Consumer Fuel Costs Relief Act
- Sponsor
- Rep. Pappas, Chris [D-NH-1]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Sep 24, 2026
Bottom line
This bill aims to reduce fuel costs for consumers by temporarily eliminating federal excise taxes on motor and aviation fuels, while backfilling the affected trust funds from the general fund.
What it actually does
This bill establishes a temporary tax holiday for federal motor and aviation fuel excise taxes, setting the rates to zero and suspending the Leaking Underground Storage Tank Trust Fund financing rate until October 1, 2027. It mandates transfers from the general fund to replenish the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for the lost revenue. The bill also includes a policy statement that the tax reduction benefits should be passed to consumers and grants enforcement authority to the Treasury, FTC, and CFTC to prevent price gouging.
Proponents argue
Proponents argue that this bill will provide immediate financial relief to consumers by lowering prices at the pump and for air travel, stimulating economic activity by reducing transportation costs for individuals and businesses. They emphasize the importance of ensuring these savings are directly passed on to consumers through robust enforcement mechanisms.
Opponents contend
Opponents may contend that while the bill offers short-term relief, it could exacerbate the national debt by drawing funds from the general treasury to backfill trust funds, rather than addressing underlying causes of high fuel prices. They might also express skepticism about the effectiveness of enforcement mechanisms in ensuring price reductions are fully passed to consumers, suggesting that fuel companies could absorb some of the tax savings.
The bill is very short and straightforward, making it highly accessible for any reader to understand its core provisions quickly.
Section 2(a)
Temporary Suspension of Federal Fuel Excise Taxes
This provision temporarily sets the federal excise tax rates on motor and aviation fuels to zero, and also suspends the Leaking Underground Storage Tank Trust Fund financing rate. This tax holiday applies to fuel removed, entered, or sold from the bill's enactment date until October 1, 2027.
Supporters argue
Supporters argue this will directly lower fuel costs for millions of Americans and businesses, providing immediate economic relief during periods of high energy prices.
Critics contend
Critics might argue that this measure primarily benefits fuel companies if the savings are not fully passed on, and that it creates a fiscal hole in dedicated trust funds, even if backfilled by the general fund.
Tradeoffs
The tension lies between providing immediate consumer relief and potentially impacting federal revenue streams, even with the backfill mechanism. There's also the challenge of ensuring the savings reach consumers rather than being absorbed by industry.
Section 2(b)
Replenishment of Highway and Leaking Underground Storage Tank Trust Funds
This provision directs the Secretary of the Treasury to transfer funds from the general fund to both the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. The amount transferred will be equal to the revenue lost by these trust funds due to the temporary fuel tax holiday. These transfers are designed to ensure that the trust funds remain solvent and can continue their intended infrastructure and environmental programs.
Section 2(c)
Mandate to Pass on Tax Reduction Benefits to Consumers
This section establishes a policy that the tax reduction benefits must immediately be passed on to consumers. It explicitly states that transportation motor fuels producers, airline service providers, and other dealers must reduce prices to reflect the tax reduction. It also stipulates that those who fail to pass on these savings will be subject to monetary penalties. The Secretary of the Treasury, the Federal Trade Commission (FTC), and the Commodity Futures Trading Commission (CFTC) are granted authority to monitor markets and ensure compliance, preventing price gouging and market manipulation.