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Gas Prices Relief Act Seeks Federal Tax Cut
Gas Tax graphic

Legislators are hoping to bring some relief to residents at the gas pumps.

On Friday, Feb. 18 area Congressman Josh Harder joined with fellow legislators for the introduction of the Gas Prices Relief Act of 2022 to suspend the federal gas tax by creating a federal gas tax ‘holiday.’ The Gas Prices Relief Act of 2022 would halt the 18.4 cents per gallon gas tax levied by the federal government through the end of 2022. According to AAA, Californians currently pay an average of $4.72 cents per gallon, the highest price in the nation and $1.20 more than the national average.

For months, Rep. Harder has been leading the charge on the state and federal level to lower the price of gas. In his December op-ed in Fox Business, he called on Sacramento to pause the gas tax as families struggle to pay all-time high prices at the pump. Soon after, Governor Gavin Newsom announced a proposal for a gas tax ‘holiday’ which would save California families $523 million this year.

“Families in the Central Valley pay some of the highest gas prices in the country, and I’m sick and tired of government making the situation worse. Today, my colleagues and I introduced legislation to suspend the gas tax so our families can keep a few more dollars in their pockets,” said Harder in announcing the bill on Feb. 18. “My number one priority right now is bringing prices down so everyone can afford to live and raise a family in the Valley. The government needs to stop taxing us left and right, and instead give our families a break.”

The Gas Prices Relief Act of 2022 would lower high gas prices and deliver much-needed economic relief to Americans across the country by: 

Suspending the 18.4 cents per gallon federal gas tax  until Jan. 1, 2023. Currently, the national average for the cost of a gallon of gas is nearly one dollar higher than it was at the same time last year, according to AAA. 

Passing tax savings to Americans and not oil and gas companies by requiring the Secretary of the Treasury to monitor the program in order to ensure oil and gas companies pass along the savings at the pump to consumers. The bill also encourages the Secretary to take appropriate enforcement actions to ensure consumers see these savings. 

Maintaining the integrity of the Highway Trust Fund by requiring the Department of the Treasury to make general fund transfers to keep the Highway Trust Fund solvent.