Gas Prices Relief Act of 2025
The Gas Prices Relief Act of 2025 would provide a temporary federal gasoline tax holiday. For gasoline sold, entered, or removed from the date the bill becomes law through December 31, 2025, the federal excise tax on gasoline (and the associated Leaking Underground Storage Tank (LUST) financing rate) would be set to zero. To offset the resulting loss in revenue to the Highway Trust Fund and the LUST Trust Fund, the bill requires the Treasury to transfer from the general fund to those two trust funds an amount equal to the reduction in their receipts caused by the tax holiday. The bill directs enforcement to ensure consumers actually receive the benefit and that prices reflect the tax cut. In short: a temporary 0% federal gasoline tax for most of 2025, with backstop funding from the general fund to keep key transportation and environmental trust funds whole, and a policy emphasis on passing savings to consumers.
Key Points
- 1Temporary 0 rate: The federal gasoline excise tax rate (and the LUST financing portion) would be zero for gasoline sold or entered from enactment through 12/31/2025.
- 2Trust fund offsets: The Secretary of the Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank (LUST) Trust Fund amounts equal to the revenue reduction caused by the tax holiday.
- 3Fund accounting rules: The transfers are to be treated in specific ways for fund purposes—some transfers count as taxes attributable to the LUST financing rate, others as taxes not attributable to that rate—so each fund’s receipts are properly recorded.
- 4Pass-through to consumers: The bill states it is Congress’s policy that consumers immediately benefit from the tax reduction, and that producers/dealers should take actions to lower prices accordingly.
- 5Enforcement: The Secretary may use all available authorities to ensure consumer benefits are realized and reflected in prices.