American Families Gas Tax Relief Act
HB8795, titled the American Families Gas Tax Relief Act, would create a temporary federal fuel tax holiday for gasoline (excluding aviation gasoline), diesel fuel, and kerosene. For 120 days after enactment, the bill would set the federal excise tax rates on those fuels to zero and suspend the Leaking Underground Storage Tank Trust Fund financing rate. The President could extend the holiday by up to 90 additional days if economic conditions warrant it in the President’s discretion.
To prevent the temporary tax suspension from reducing dedicated transportation and environmental trust fund receipts, the bill directs the Treasury Secretary to transfer from the general fund amounts equal to the forgone revenues into the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. It also states Congress’s policy that consumers should immediately receive the benefit of the tax reduction and authorizes Treasury to use applicable enforcement authorities to ensure fuel price reductions are passed through to consumers.
The bill would temporarily amend the operation of Internal Revenue Code section 4081 by reducing federal excise taxes on motor fuels to zero for a limited period and suspending the LUST financing rate. It would also require offsetting transfers from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund, preserving those funds’ expected receipts despite the tax holiday. The practical effect would be to lower federal fuel tax collections for the holiday period while maintaining trust fund balances through general revenue transfers, affecting fuel producers, wholesalers, retailers, consumers, and federal transportation financing.
Based on the bill text and the absence of recorded committee debate or votes, the measure appears framed as consumer relief legislation intended to reduce fuel prices during a period of economic pressure. The title and findings language emphasize immediate relief for families and consumers, suggesting supportive intent toward motorists and fuel users. Because there are no transcripts or vote records provided, no formal bipartisan or partisan sentiment can be inferred beyond the bill’s pro-relief framing.
The main point of contention likely concerns whether a federal fuel tax holiday would actually be passed through to consumers at the pump, since the bill explicitly instructs Treasury to ensure that producers and dealers reduce prices accordingly. Another likely issue is fiscal policy: although the bill backfills trust funds with general revenues, critics may object to the use of federal funds to replace dedicated fuel tax receipts and to the temporary loss of excise-tax revenue. Supporters would likely emphasize short-term consumer relief, while opponents may question effectiveness, administrative enforceability, and the precedent of suspending fuel taxes.