IntroducedIntroduced Mar 9, 2026

S. 4032: Gas Prices Relief Act of 2026

This legislation was introduced in the on 2026-03-09. It currently has a status of Introduced.

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AI Short Summary

The Gas Prices Relief Act of 2026 suspends the federal gasoline tax through September 2026 to lower fuel costs, while requiring fuel companies to pass those savings directly to drivers. To ensure infrastructure projects remain funded, the bill replaces the lost tax revenue with money from the government’s general fund.

The Gas Prices Relief Act of 2026 would temporarily eliminate the federal gasoline tax through September 30, 2026. The goal is to lower costs for drivers at the pump while using general federal funds to ensure that highway and infrastructure projects do not lose their funding during this period.

Summary Introduced in March 2026, S. 4032 seeks to provide immediate financial relief to American consumers by suspending the federal excise tax on gasoline. This "tax holiday" would begin on the date of the bill's enactment and expire on October 1, 2026. To ensure this tax cut does not disrupt national infrastructure maintenance, the bill requires the Department of the Treasury to replace the lost revenue in the Highway Trust Fund using general government funds.

Key Provisions

Tax Suspension: Sets the federal gasoline tax rate (currently 18.4 cents per gallon) to zero until October 1, 2026.
Storage Tank Fund Suspension: Also suspends the "Leaking Underground Storage Tank Trust Fund" financing rate for gasoline during the same period.
Infrastructure Backfill: Mandates that the Secretary of the Treasury transfer money from the General Fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to make up for the lost tax revenue.
Consumer Protection Policy: Expressly states that the benefit of the tax reduction should be passed directly to consumers rather than being absorbed as profit by fuel producers or dealers.
Enforcement: Directs the Secretary of the Treasury to use all applicable authorities to ensure fuel prices are reduced and authorizes monetary penalties for producers or dealers who fail to lower their prices to reflect the tax holiday.

Impact Analysis

General Public: If passed and effectively enforced, consumers would see a direct reduction in the price of gasoline at the pump (approximately 18.4 cents per gallon). This would provide temporary relief for household budgets, particularly for frequent commuters and low-income drivers.
Infrastructure and Environment: Because the bill requires the Treasury to "backfill" the Highway Trust Fund from the general budget, the legislation is designed to prevent delays or cancellations of road construction, bridge repairs, and environmental cleanup projects that usually rely on gas tax revenue.
Federal Budget: The bill would result in a temporary decrease in dedicated excise tax revenue, necessitating the use of general tax dollars to maintain infrastructure spending. This could increase the federal deficit or require shifting funds away from other government programs.
Regulatory Oversight: The bill places a significant administrative burden on the Department of the Treasury to monitor fuel prices across the country and take enforcement action against companies that do not pass the savings to the public. The success of the bill's intent depends heavily on how effectively the government can prevent "windfall profits" where retailers keep prices high despite the tax cut.

Sponsors & Co-Sponsors

Sen. Kelly, Mark [D-AZ]

Primary Sponsor (D-AZ)

Sen. Blumenthal, Richard [D-CT]

Co-Sponsor (D-CT)

Bill Rendering

119 S4032 IS: Gas Prices Relief Act of 2026U.S. Senate2026-03-09text/xmlENPursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

119th CONGRESS

2d Session

S. 4032

IN THE SENATE OF THE UNITED STATES

March 9, 2026 Mr. Kelly (for himself and Mr. Blumenthal) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday.

This Act may be cited as the "Gas Prices Relief Act of 2026".

(a)

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, and

(2)

the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2)(B) of such Code shall not apply to gasoline to which the rate under paragraph (1) applies.

(b)

(1)

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).

(2)

(A)

Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(B)

Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(c)

(1)

It is the policy of Congress that—

(A)

consumers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a),

(B)

transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction, and

(C)

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.

(2)

The Secretary of the Treasury shall use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from the application of subsection (a) is received by consumers.

Official Source

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