Gas Prices Relief Act of 2026

Plain-English Summary

This bill would temporarily suspend the federal tax on gasoline, commonly called a "gas tax holiday." Under current law, the federal government charges an excise tax on every gallon of gasoline purchased — currently 18.4 cents per gallon for regular gasoline and 24.4 cents per gallon for diesel fuel. This legislation would pause the collection of that tax for a period of time, meaning the tax would not be charged during the holiday period.

The bill would most directly affect everyday Americans who drive cars, trucks, or other gasoline-powered vehicles. If passed, drivers could potentially see lower prices at the pump during the holiday period, since gas stations would not need to pass the federal tax along to customers. The savings would depend on whether fuel retailers and distributors actually pass the tax reduction on to consumers in the form of lower prices. Businesses that rely heavily on fuel — like trucking companies, delivery services, and farms — could also see reduced operating costs.

It is worth noting that the federal gas tax is a major source of funding for the Highway Trust Fund, which pays for road construction, bridge repairs, and other transportation infrastructure across the country. Suspending the tax, even temporarily, would reduce the money flowing into that fund. The bill has been referred to the House Committee on Ways and Means, which handles tax-related legislation, and has not yet advanced further in the legislative process.