Proposed federal gas‑tax suspension would blunt pump‑price spike

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Proposed federal gas‑tax suspension would blunt pump‑price spike
Gas Prices Relief ActMark KellyRichard Blumenthal
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Don Davis joined the KGUN 9 news team in 2025. Don is the Executive Producer, Digital and has over two decades of experience in journalism as a digital manager, writer and editor.

Senators Mark Kelly and Richard Blumenthal , joined by Rep. Chris Pappas , on Monday introduced the Gas Prices Relief Act to immediately suspend the federal 18.4‑cent‑per‑gallon gas excise tax through Oct.

1, 2026. The bill’s sponsors say the pause would shave roughly 18 cents off every gallon, provide immediate economic relief for families facing a recent jump in pump prices tied by Democrats to the war in Iran, and direct the Treasury to backfill highway and cleanup accounts so infrastructure funding is not disrupted.“Families across Arizona shouldn’t pay the price for Donald Trump’s bad decisions,” Sen. Kelly said in the bill release announcing the measure, pointing to recent spikes in statewide pump prices. Sen. Blumenthal said, 'Trump’s war of choice with Iran is driving up gas prices across the country—and Americans shouldn’t have to bear the additional economic burden of Trump’s reckless decision making.' Rep. Pappas said he would introduce companion legislation in the House to provide “badly‑needed relief.”Tucsonans have been feeling the pinch at the pump. Last week, I took this photo of the prices at an eastside Wal-Mart gas station:And today, exactly one week later, I took this photo below - you can see regular, plus and premium each jumped .40 cents in just one week.Opponents to the new Gas Prices Relief Act say a temporary federal tax pause is likely to deliver only modest savings and could carry fiscal and enforcement complications — concerns that echo critiques voiced during a similar 2022 debate.What happened in 2022 — and the public counterarguments from that timeIn mid‑2022, amid a surge in pump prices, Democrats proposed a temporary federal gas‑tax holiday. The idea quickly ran into bipartisan skepticism. Senate Republican John Thune called such proposals “dead on arrival” during the 2022 debate, and other critics labeled the move political theater rather than a meaningful fix. House Transportation figures and infrastructure advocates warned a suspension could be “short‑sighted,” because it would reduce dedicated revenue for roads and bridges unless offsets were provided; some Democratic leaders at the time, including Nancy Pelosi, urged alternatives such as targeted rebates or other direct relief.Media and economists in 2022 repeatedly cautioned that without enforceable measures to compel pass‑through, much of any tax suspension risked being absorbed as higher industry margins rather than producing equivalent reductions at the pump, meaning that simply pausing the 18.4¢ federal gas excise tax could leave consumers with no real savings unless the government put effective rules or financial fixes in place — because private firms along the fuel chain could keep the tax cut as extra profit instead of lowering pump prices, and the lost federal revenue would still need to be replaced so roads and cleanup programs aren’t shorted. Treasury to monitorSupporters say the Kelly measure addresses some of these concerns by requiring Treasury to monitor the program and directing transfers to keep highway and underground storage tank funds whole. The bill also authorizes the Treasury to use available authorities to “help ensure” benefits are passed to consumers, but it does not lay out explicit penalties if firms fail to pass savings on — a gap that opponents and some analysts say could limit the policy’s effectiveness.The bill’s prospects in a divided Congress are uncertain. Lawmakers skeptical of a gas‑tax holiday are likely to press sponsors for stronger enforcement language, clearer offsets for the Highway Trust Fund, or more targeted relief mechanisms such as direct rebates or refundable tax credits.Savings at the pumpBy suspending the 18.4¢ federal excise tax while directing Treasury to backfill highway and cleanup accounts, the bill aims to protect infrastructure funding while putting money back in motorists’ pockets. Lawmakers urging swift action say Congress should move quickly to pass the measure — and bolster it with clear oversight and enforcement language — so the intended savings reach consumers without jeopardizing essential transportation programs.

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