American Families Gas Tax Relief Act
- Sponsor
- Rep. Luna, Anna Paulina [R-FL-13]
- Committees
- Ways and Means Committee (primary)
- Last action
- May 13, 2026
Bottom line
The American Families Gas Tax Relief Act aims to temporarily lower fuel prices for consumers by suspending federal fuel taxes, while backfilling the affected trust funds from the general Treasury.
What it actually does
This bill establishes a federal fuel tax holiday for gasoline, diesel fuel, and kerosene for 120 days, with a potential 90-day extension by the President. To prevent depletion of infrastructure funds, it mandates transfers from the Treasury's general fund to the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund to cover the lost revenue. The bill also declares a policy that the tax reduction benefits should be immediately passed on to consumers, empowering the Treasury Secretary to enforce this.
Proponents argue
Proponents argue that suspending the federal fuel tax will provide immediate financial relief to American families and businesses facing high gas prices, stimulating economic activity by reducing transportation costs. They emphasize that the bill ensures critical infrastructure trust funds remain fully funded by drawing from the general Treasury, preventing any negative impact on road and bridge projects.
Opponents contend
Opponents might argue that a fuel tax holiday offers only marginal and temporary relief to consumers, as fuel prices are largely influenced by global markets and refinery capacity, not just federal taxes. They may also contend that backfilling trust funds from the general Treasury could exacerbate the national debt or divert funds from other essential government programs, effectively shifting the cost rather than eliminating it.
The bill is very short and can be read and understood quickly, making it accessible for immediate evaluation.
Section 2(a)
Temporary Suspension of Federal Fuel Taxes
This provision temporarily sets the federal excise tax rates on gasoline, diesel fuel, and kerosene to zero. This suspension would last for 120 days from the bill's enactment. The President is granted discretionary authority to extend this tax holiday for an additional 90 days if economic conditions warrant it.
Supporters argue
Supporters argue this directly lowers the cost of fuel at the pump, providing immediate financial relief to households and businesses struggling with high energy costs.
Critics contend
Critics contend that the impact on pump prices may be minimal and temporary, as other factors like crude oil prices and refinery margins have a larger influence. They also question the effectiveness of such a short-term measure.
Tradeoffs
Balances the desire for immediate consumer relief against potential long-term fiscal implications and the effectiveness of short-term price interventions.
Section 2(b)
Transfers to Highway and Leaking Underground Storage Tank Trust Funds
This section mandates that the Secretary of the Treasury transfer funds from the general fund of the Treasury to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. These transfers are intended to compensate for the revenue lost by these trust funds due to the temporary fuel tax holiday, ensuring that their funding levels for infrastructure projects are maintained.
Section 2(c)
Policy on Passing Benefits to Consumers
This provision establishes a policy that consumers should immediately benefit from the tax reduction and that fuel producers and dealers should actively reduce prices to reflect this change. It also grants the Secretary of the Treasury authority to use "all applicable authorities" to ensure that these benefits are indeed passed on to consumers.