H.R. 8252 – Gas Tax Reduction Act

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Updated April 16, 2026 at 4:52 AM UTC

The Gas Tax Reduction Act would let the federal government hold back a portion of highway funding from any state whose gasoline tax is $0.50 per gallon or higher. Starting the first fiscal year after a state’s tax reaches that level, the Secretary of Transportation must withhold 8% of the funds that would normally be allocated to that state under certain highway‑aid formulas. The bill also updates the table of sections in Title 23 to reflect the new provision.

Key Provisions

Adds a new Section 180 to Title 23 that requires the Secretary of Transportation to withhold 8% of a state’s highway‑aid allocation under sections 104(b)(1) and 104(b)(2) if the state’s gasoline tax is $0.50 per gallon or more.
The withholding begins on the first day of the fiscal year after the first fiscal year in which the state’s tax meets the $0.50 threshold.
Amends the table of contents for Title 23 to list the new Section 180.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Transportation and Infrastructure.

Transportation and Infrastructure Committee

April 13, 2026

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HouseIntro Referral

Introduced in House

April 13, 2026

HouseIntro Referral

Referred to the House Committee on Transportation and Infrastructure.

Transportation and Infrastructure Committee

April 13, 2026

Bill Text

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Introduced in HouseIssued April 13, 2026

I

119th CONGRESS

2d Session

H. R. 8252

IN THE HOUSE OF REPRESENTATIVES

April 13, 2026

Mr. Kiley of California introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

A BILL

To amend title 23, United States Code, to provide for withholding of funds for noncompliance with State gas tax restriction, and for other purposes.

1.

Short title

This Act may be cited as the Gas Tax Reduction Act.

2.

Withholding of funds for noncompliance with State gas tax restriction

(a)

In general

Chapter 1 of title 23, United States Code, is amended by adding at the end the following:

180.

Withholding of funds for noncompliance with State gas tax restriction

The Secretary shall withhold 8 per centum of the amount required to be apportioned to any State under each of paragraphs (1) and (2) of section 104(b) on the first day of each fiscal year after the first fiscal year beginning after the date of enactment of this section in which the tax for gasoline in such State is equal to or greater than $0.50 per gallon.

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(b)

Clerical amendment

The table of sections for chapter 1 of title 23, United States Code, is amended by adding at the end the following:

180. Withholding of funds for noncompliance with State gas tax restriction.

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