Two Democratic lawmakers proposed a bill that would suspend the federal gas tax for the rest of the year to help ease the burden of Americans struggling with rising consumer prices.

What You Need To Know

  • Sens. Mark Kelly, D-Ariz., and Maggie Hassan, D-N.H., proposed a bill that would suspend the federal gas tax for the rest of the year

  • The federal gas tax is currently $18.4 cents per gallon; revenues from the tax go into a trust which funds highway construction and public transportation projects 

  • The bill comes as gas prices are roughly $1 more than they were a year ago, according to a survey from AAA

  • Despite record economic progress and job growth under President Joe Biden, including 2021 seeing the fastest economic growth since the Reagan administration, Republicans are hammering Democrats on rising consumer prices, which have reached their highest levels in decades, as the 2022 midterms approach

The Gas Prices Relief Act, proposed by Sens. Mark Kelly, D-Ariz., and Maggie Hassan, D-N.H. – both up for re-election in the fall – would suspend the federal gas tax through the end of 2022. The federal gas tax is currently $18.4 cents per gallon.

The bill comes as gas prices are roughly $1 more than they were a year ago, according to a survey from AAA. The average price of a gallon of regular gas is currently $3.469, up from $2.469 last year, and those prices could rise higher during peak seasons.

People are feeling a real pinch on everyday goods, and we must do more to help address rising costs, particularly the price of gas,” Sen. Hassan said. “We need to continue to think creatively about how we can find new ways to bring down costs, and this bill would do exactly that, making a tangible difference for workers and families.”  

“Arizonans are paying some of the highest prices for gas we have seen in years and it’s putting a strain on families who need to fill up the tank to get to work and school,“ Sen. Kelly said in a statement. “This bill will lower gas prices by suspending the federal gas tax through the end of the year to help Arizona families struggling with high costs for everything from gas to groceries.”

Funds from the gas tax go into a trust that supports highway construction and public transportation projects . The bill would require that the U.S. Treasury transfer general funds into the trust fund to make up for the lost gas tax revenue and keep the trust fund solvent.

It would also require the Treasury Department to monitor whether oil and gas companies are passing along the savings to consumers and encourage the department’s secretary to take enforcement actions to ensure they do.

Despite record economic progress and job growth under President Joe Biden, including 2021 seeing the fastest economic growth since the Reagan administration, Republicans are hammering Democrats on rising consumer prices, which have reached their highest levels in decades, as the 2022 midterms approach.

The bill was co-sponsored by Sens. Debbie Stabenow, D-Mich., Raphael Warnock, D-Ga., Jackie Rosen, D-Nev., and Catherine Cortez Masto, D-Nev. Both Warnock and Cortez Masto are facing tough re-election challenges in 2022.

"Hardworking Georgians being squeezed at the pump understand that every penny counts," Warnock wrote in a statement. "I’m proud to join my colleagues in introducing the Gas Prices Relief Act to help working and middle class families overcome the economic pressures of the pandemic, and come out on top."

“This is important legislation that will help us lower costs for Nevada families,” said Sen. Cortez Masto. “I’m committed to finding solutions that bring our families some much-needed relief at the pump and help them get ahead.” 

The Associated Press contributed to this report.