To temporarily suspend the imposition of certain fuel taxes.
- Sponsor
- Rep. Harris, Andy [R-MD-1]
- Committees
- Ways and Means Committee (primary)
- Last action
- Sep 15, 2026
Bottom line
This bill aims to provide immediate financial relief to consumers by temporarily eliminating federal fuel excise taxes and includes provisions to ensure these savings are passed on at the pump, though it would significantly impact the Highway Trust Fund.
What it actually does
This bill temporarily suspends federal excise taxes on certain taxable fuels, including gasoline, diesel, and kerosene, from its enactment date until December 31, 2026. It explicitly states a policy that the resulting tax relief should be immediately passed on to consumers and directs the Secretary of the Treasury to enforce this, including through monetary penalties for non-compliant producers and dealers.
Proponents argue
Supporters argue that suspending the federal fuel tax will provide immediate and tangible financial relief to consumers and businesses grappling with high gasoline and diesel prices, thereby stimulating economic activity by reducing transportation costs. They emphasize the critical importance of ensuring these savings are directly reflected in lower prices for the public, rather than being absorbed by fuel companies.
Opponents contend
Opponents contend that a fuel tax suspension would severely deplete the Highway Trust Fund, which is a vital source of funding for national infrastructure projects, potentially delaying critical repairs and new construction. They also express skepticism that the tax savings would be fully passed on to consumers, suggesting that a significant portion could instead benefit fuel producers and distributors, while leaving a substantial hole in infrastructure funding.
The bill text is exceptionally short and straightforward, allowing for quick and easy comprehension of its core provisions by any reader.
Section 1(a)
Temporary Suspension of Federal Fuel Excise Tax
This provision sets the federal excise tax rate to zero for taxable fuels, such as gasoline, diesel, and kerosene, that are removed, entered, or sold between the bill's enactment date and December 31, 2026. This action directly reduces the federal tax component of fuel prices, aiming to lower costs for consumers.
Supporters argue
Supporters argue this provision provides immediate and tangible financial relief to American families and businesses struggling with high fuel costs, directly lowering prices at the pump and boosting economic activity.
Critics contend
Critics contend this provision will severely undermine the solvency of the Highway Trust Fund, jeopardizing essential infrastructure projects and potentially requiring future tax increases or borrowing to compensate for the lost revenue.
Tradeoffs
This provision balances the immediate benefit of consumer relief from high fuel prices against the long-term funding stability of critical national infrastructure projects.
Section 1(b)
Policy on Passing Tax Relief to Consumers and Enforcement
This section establishes a Congressional policy that consumers must immediately receive the full benefit of the tax reduction. It mandates that fuel producers and dealers reduce prices to reflect this tax cut and states that those who fail to do so will face monetary penalties. The Secretary of the Treasury is directed to use all available authorities to ensure these savings are passed on to consumers.