Federal gas tax suspended under bill that shields road funding

What does this do?

S 4485 would set the federal gas tax to zero beginning on the day the law is signed, eliminating the current 18.4-cent-per-gallon tax on gasoline and the 24.4-cent-per-gallon tax on diesel. The suspension would last 90 days by default, with the President able to extend it to 180 days if economic conditions are judged severe enough. A smaller tax that funds cleanup of leaking underground fuel storage tanks would also be paused during this period.

Who does it affect?

Anyone who buys gasoline or diesel in the United States could be affected if suppliers and retailers pass the savings along at the pump. Trucking companies and businesses that depend heavily on diesel would also feel a direct impact.

Why does it matter?

Because gas tax revenue would stop flowing into the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund, the U.S. Treasury would be required to replace that money from the general fund. Taxpayers broadly would be indirectly affected, as the general fund is supported by wider tax revenue and government borrowing.

What does it cost, and who pays?

• Treasury backfills all lost gas tax revenue
• Covers Highway Trust Fund and tank cleanup fund
• General fund supported by taxes and borrowing

Where does it stand?