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Congress·In Committee·S. 4032

Sen. Kelly Introduces Bill to Suspend 18.4-Cent Federal Gas Tax Through October

Gas Prices Relief Act of 2026

12 days ago·View on Congress.gov

Legislative Progress

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Key Points

  • This bill would temporarily set the federal gasoline tax rate to zero from the date of enactment through September 30, 2026. The current federal gas tax is 18.4 cents per gallon, so drivers would see that amount shaved off every gallon they buy during the holiday period.

    From policy text

    “In the case of gasoline removed, entered, or sold on or after the date of the enactment of this Act and before October 1, 2026-- (1) the rate of tax under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 shall be zero”
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  • The bill states that gas companies and dealers must pass the tax savings on to consumers by lowering prices. Companies that pocket the savings instead of passing them along could face monetary penalties at least equal to the tax reduction they failed to share.

    From policy text

    “transportation motor fuels producers and other dealers that fail to reduce transportation motor fuels prices to reflect such reduction shall be subject to monetary penalties which are not less than the amount of the reduction in taxes which should have been passed on to consumers”
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  • To prevent the tax holiday from starving road and bridge projects of funding, the Treasury would transfer money from the general federal budget into the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to replace every dollar of lost gas tax revenue.

    From policy text

    “The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a).”
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  • The bill was introduced by Sen. Kelly with Sen. Blumenthal as co-sponsor and has been referred to the Senate Finance Committee. It would need to clear that committee, pass both chambers of Congress, and be signed into law before drivers would see any savings.

    From policy text

    “Mr. Kelly (for himself and Mr. Blumenthal) introduced the following bill; which was read twice and referred to the Committee on Finance”
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TaxesInfrastructure TransportationEnergy Environment

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Mar 9, 2026Senate

Read twice and referred to the Committee on Finance.

Mar 9, 2026

Introduced in Senate

Source Information

Document Type

Congressional Bill

Official Title

Gas Prices Relief Act of 2026

Bill NumberS 4032
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. Always verify with official sources.