EASE Act
- Sponsor
- Rep. Fry, Russell [R-SC-7]
- Committees
- Ways and Means Committee (primary)
- Last action
- Oct 1, 2026
Bottom line
This bill grants the President a new, time-limited power to reduce fuel costs during energy crises by temporarily eliminating federal gas taxes, shifting the revenue burden to the general fund to protect infrastructure funding.
What it actually does
This bill amends the Internal Revenue Code to grant the President authority to temporarily suspend the federal excise tax on gasoline and the Leaking Underground Storage Tank (LUST) Trust Fund financing rate for 60 to 120 days during a declared national emergency related to fuel supply or price. It mandates that the Treasury's general fund backfill any lost revenue to the Highway Trust Fund and the LUST Trust Fund.
Proponents argue
Supporters argue this bill provides a crucial tool for the President to quickly respond to sudden spikes in gas prices or supply disruptions, offering immediate financial relief to consumers and businesses. They contend it stabilizes the economy during emergencies without permanently defunding infrastructure, as the general fund backfills the trust funds.
Opponents contend
Opponents might argue that suspending the gas tax, even temporarily, sets a dangerous precedent for raiding the general fund to cover dedicated infrastructure funding, potentially encouraging fiscal irresponsibility. They could also contend that the relief to consumers would be minimal or absorbed by fuel companies, while the long-term impact on the federal budget could be significant.
The bill is short and relatively straightforward, allowing for a quick understanding of its core mechanism and implications.
Section 2(a), amending IRC Section 4081(f)(1)
Temporary Suspension of Federal Fuel Taxes
This provision allows the President to declare a 'national emergency gas tax suspension period' during which the federal excise tax on gasoline and the Leaking Underground Storage Tank (LUST) Trust Fund financing rate will be set to zero. This directly reduces the federal tax component of fuel prices for consumers and businesses.
Supporters argue
Supporters argue this provides immediate, tangible relief to American families and businesses struggling with high fuel costs during a crisis, helping to stabilize household budgets and economic activity.
Critics contend
Critics might argue that the benefit to consumers could be minimal, as fuel retailers may not pass on the full tax savings, or that it could stimulate demand, exacerbating supply issues during an emergency.
Tradeoffs
Balances immediate consumer relief against potential market distortions and the principle of dedicated infrastructure funding.
Section 2(a), amending IRC Section 4081(f)(2)
Presidential Authority and Duration of Suspension
This section defines the 'national emergency gas tax suspension period' as initially 60 days, starting from a Presidential declaration. The President can extend it to 120 days if they determine the emergency continues. The declaration is triggered by a national emergency causing or threatening substantial disruption in fuel supply/availability or a substantial price increase.
Section 2(a), amending IRC Section 4081(f)(3)
Backfilling Highway and LUST Trust Funds
This provision mandates that the Secretary of the Treasury transfer funds from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. These transfers will cover the exact amounts of revenue lost due to the gas tax suspension, ensuring that these dedicated infrastructure and environmental funds remain whole.
Section 2(a), amending IRC Section 4081(f)(4)
Sunset Clause for Suspension Authority
This provision establishes a sunset date of December 31, 2028, after which the authority for the President to suspend the gas tax under this Act will expire. This means the power granted by the bill is temporary and not a permanent addition to the Internal Revenue Code.