U.S. Senator Josh Hawley (R-Mo.) introduced a new bill on Monday aimed at giving Americans some breathing room at the gas station.
The “Gas Tax Suspension Act” would effectively hit the pause button on federal fuel taxes, a move that comes shortly after President Trump voiced his support for a temporary holiday on the 18-cent federal levy.
The timing isn’t accidental. Across the country, drivers are staring down a national average of more than $4.50 for a gallon of regular gas, while diesel has climbed to nearly $5.70. In Hawley’s home state of Missouri, the situation is even tighter. Prices there have jumped 47% for gas and 65% for diesel compared to just one year ago.
“President Trump has proposed to suspend the federal gas tax and he’s exactly right,” Hawley said in a statement. “American workers and families deserve immediate relief and this legislation will do just that.”
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If passed, the law would immediately scrap the 18.4 cents-per-gallon tax on gasoline and the 24.4 cents-per-gallon tax on diesel.
This “tax holiday” is set to last for an initial 90 days. However, the bill gives the President the power to extend that window for another 90 days if the economy still looks rough, potentially offering six months of total relief.
To make sure the country’s infrastructure doesn’t take a hit while the taxes are suspended, the bill includes a “hold harmless” provision.
This requires the Treasury Department to move money from the general fund into the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. Essentially, the government would use general revenue to cover the gap, ensuring road projects stay funded even while the tax rate sits at zero.
The bill has been formally read in the Senate and referred to a committee for further review.
For now, the proposal serves as a direct response to a year of record-breaking costs, with regular fuel in the US climbing above the $4 mark and diesel past $5.20.
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