Diesel Prices Relief Act of 2026

Key Points

• The bill would set the federal diesel fuel tax rate to zero from the date it is signed into law through the end of 2026. The current federal excise tax on diesel is about 24.4 cents per gallon, so this would eliminate that cost during the holiday period.
• The bill also suspends the Leaking Underground Storage Tank Trust Fund financing rate on diesel fuel during the same period, removing an additional small per-gallon charge.
• To keep road and bridge funding whole, the Treasury would transfer money from the general fund to replace what the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund would have collected during the tax holiday.
• Congress states that consumers should get the full benefit of the tax cut and that fuel producers and dealers should lower their prices accordingly. The Treasury Department is given authority to enforce this.