H.R.3768 - Gas Prices Relief Act of 2025 (119th Congress)
Summary
H.R.3768, the Gas Prices Relief Act of 2025, proposes a temporary suspension of the federal gasoline tax from the date of enactment until January 1, 2026. The bill aims to lower gasoline prices for consumers by eliminating the tax imposed under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986. It also suspends the Leaking Underground Storage Tank Trust Fund financing rate during this period.
To ensure the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund are not negatively impacted, the bill mandates the Secretary of the Treasury to transfer funds from the general fund to these trust funds, compensating for the tax revenue reduction. The bill expresses the policy of Congress that the benefits of the tax reduction should be passed on to consumers immediately.
It also grants the Secretary the authority to enforce this provision, ensuring that transportation motor fuels producers and dealers reduce prices to reflect the tax reduction.
Expected Effects
The immediate effect of this bill, if enacted, would be a reduction in the price of gasoline at the pump for consumers. This would provide short-term financial relief to individuals and families, particularly those who rely heavily on gasoline for transportation.
However, the bill could also lead to a decrease in funding for infrastructure projects supported by the Highway Trust Fund, unless the general fund transfers fully compensate for the lost tax revenue. The effectiveness of the bill hinges on whether fuel producers and dealers pass the tax savings onto consumers, which the Secretary is empowered to enforce.
Potential Benefits
- Immediate reduction in gasoline prices: Consumers would experience lower costs at the pump, providing short-term financial relief.
- Potential stimulus to the economy: Lower gasoline prices could free up disposable income for consumers, leading to increased spending in other sectors.
- Offsets impact to trust funds: The bill requires the Secretary of the Treasury to transfer funds to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund, mitigating potential negative impacts on infrastructure projects.
- Addresses rising energy costs: Provides a direct response to concerns about increasing gasoline prices, which can disproportionately affect lower-income individuals.
- Enforcement mechanism: The bill empowers the Secretary to ensure that the tax reduction benefits are passed on to consumers.
Potential Disadvantages
- Potential strain on the general fund: Transfers from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund could strain the federal budget.
- Uncertainty of price reduction being passed on: There is no guarantee that gasoline producers and dealers will fully pass the tax savings onto consumers, even with enforcement measures.
- Temporary solution: The tax holiday is only in effect until January 1, 2026, providing only short-term relief.
- Possible impact on infrastructure projects: If the general fund transfers are insufficient, infrastructure projects could be delayed or underfunded.
- Potential for increased gasoline consumption: Lower prices could incentivize increased gasoline consumption, potentially offsetting environmental benefits from other policies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises. The bill modifies existing tax law, which falls under this enumerated power. Additionally, the bill's provision for transferring funds to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund could be argued to fall under the "general Welfare" clause of the Constitution's Preamble, as it aims to maintain infrastructure and address environmental concerns.
However, the constitutionality of the enforcement mechanism, granting the Secretary authority to ensure price reductions are passed on to consumers, could be debated. While Congress has broad authority to regulate interstate commerce (Article I, Section 8, Clause 3), the extent to which it can directly control pricing is a complex legal question.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).