Federal gas tax suspended for 90 days under proposed House bill

What does this do?

HR 8753 would temporarily reduce the federal gas tax from 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel to zero. The suspension would begin the day the bill becomes law and last 90 days. The president could extend the suspension up to approximately 215 days total or phase the tax back in gradually rather than all at once.

Who does it affect?

Anyone who purchases gasoline or diesel in the United States could be affected if retailers pass the savings to customers. Truckers and businesses that depend heavily on diesel would also feel an impact.

Why does it matter?

Because the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund would still receive their normal funding levels, road and infrastructure programs would not face direct cuts. However, the federal general fund, which supports many other government programs, would absorb the cost of the lost tax revenue.

What does it cost, and who pays?

• Treasury backfills all lost tax revenue
• Highway Trust Fund kept whole
• General fund covers the gap