H.R. 10589 – Consumer Fuel Costs Relief Act

AI-Generated Summary

Updated September 30, 2026 at 5:53 AM UTC

The Consumer Fuel Costs Relief Act would temporarily eliminate federal excise taxes on motor and aviation fuels for sales occurring after the law’s enactment and before October 1, 2027. The tax holiday is intended to lower fuel prices for consumers, with the Treasury reimbursing the Highway and Leaking Underground Storage Tank Trust Funds for the lost revenue. The bill also requires fuel sellers and airlines to pass the tax savings on to customers and sets up enforcement mechanisms to prevent price gouging.

Key Provisions

Sets the excise tax rate on motor and aviation fuels to zero for qualifying sales from enactment until October 1, 2027, and suspends the related Leaking Underground Storage Tank (LUST) financing rate.
Requires the Treasury to transfer to the Highway Trust Fund and the LUST Trust Fund amounts equal to the tax revenue that would have been collected during the holiday period.
Mandates that fuel producers, dealers, and airline service providers reduce consumer prices to reflect the tax cut, with penalties for those who fail to do so.
Empowers the Treasury, the Federal Trade Commission, and the Commodity Futures Trading Commission to monitor fuel markets and enforce compliance, including actions against price gouging and market manipulation.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, the Judiciary, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Ways and Means Committee

September 24, 2026

View full timeline

HouseIntro Referral

Introduced in House

September 24, 2026

HouseIntro Referral

Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, the Judiciary, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Ways and Means Committee

September 24, 2026

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued September 24, 2026

I

119th CONGRESS

2d Session

H. R. 10589

IN THE HOUSE OF REPRESENTATIVES

September 24, 2026

Mr. Pappas introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, the Judiciary, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to provide a tax holiday for motor and aviation fuels.

1.

Short title

This Act may be cited as the Consumer Fuel Costs Relief Act.

2.

Tax holiday for motor and aviation fuels

(a)

In general

In the case of taxable fuel removed, entered, or sold on or after the date of the enactment of this Act and before October 1, 2027—

(1)

the rates of tax under section 4081(a)(2)(A) 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 taxable fuel to which the rate under paragraph (1) applies.

(b)

Transfers to Trust Fund

(1)

In general

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)

Coordination rules

(A)

Leaking Underground Storage Tank Trust Fund

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)

Highway Trust Fund

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)

Benefits of tax reduction should be passed on to consumers

(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,

(C)

aviation gasoline producers, airline service providers, and other dealers take such actions as necessary to ensure passengers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a), and

(D)

transportation motor fuels producers, airline service providers, and other dealers that fail to reduce prices for consumers 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)

Enforcement

(A)

Treasury

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.

(B)

FTC and CFTC

The Federal Trade Commission and the Commodity Futures Trading Commission shall use all applicable authorities to monitor oil, diesel, and gasoline markets to prevent price gouging and market manipulation in such markets.

(d)

Taxable fuel

For purposes of this section, the term taxable fuel has the same meaning given such term under section 4083(a)(1) of the Internal Revenue Code of 1986.