American Families Gas Tax Relief Act

Key Points

• This bill would suspend federal taxes on gasoline, diesel, and kerosene for 120 days starting from the date the bill becomes law. The federal gas tax is currently 18.4 cents per gallon, and diesel is 24.4 cents per gallon, so drivers could see modest savings at the pump.
• The President could extend the tax holiday for an additional 90 days beyond the initial 120-day period, potentially giving drivers up to about 7 months of lower fuel costs. This decision would be entirely at the President's discretion based on economic conditions.
• To protect highway and infrastructure funding, the Treasury would transfer money from the general fund to replace the lost tax revenue in both the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund.
• Congress states that fuel producers and dealers should pass the full savings on to consumers, and the Treasury Secretary is given authority to enforce this. Without enforcement, there is a risk that oil companies and gas stations could simply pocket the savings instead of lowering prices.