H.R. 7919 – Gas Prices Relief Act of 2026

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Updated April 22, 2026 at 6:50 AM UTC

The Gas Prices Relief Act of 2026 would temporarily eliminate the federal gasoline excise tax, setting the tax rate to zero for gasoline sold after the law takes effect and before October 1, 2026. To make up for the lost revenue, the Treasury would transfer equivalent amounts to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. The bill also requires that the tax savings be passed on to consumers, with penalties for fuel sellers who do not lower prices accordingly.

Key Provisions

Sets the federal gasoline tax to zero for gasoline sold between enactment and October 1, 2026, and suspends the related underground‑storage‑tank financing rate.
Requires the Treasury to transfer to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts equal to the tax revenue that would have been collected during the holiday period.
Mandates that fuel producers and dealers reduce pump prices to reflect the tax cut, and authorizes monetary penalties—at least equal to the tax reduction—against those who fail to pass the benefit to consumers, with Treasury enforcement authority.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 12, 2026

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HouseIntro Referral

Introduced in House

March 12, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 12, 2026

Bill Text

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Introduced in HouseIssued March 12, 2026

I

119th CONGRESS

2d Session

H. R. 7919

IN THE HOUSE OF REPRESENTATIVES

March 12, 2026

Mr. Pappas introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

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

1.

Short title

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

2.

2026 gasoline tax holiday

(a)

In general

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)

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, 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)

Enforcement

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.