"Safety Through Awareness, Awareness Through Eduction"
"Safety Through Awareness, Awareness Through Eduction"

MRF Flash Alert

Today, President Joe Biden will ask Congress to enact a three-month gasoline tax holiday. Biden will ask that both the 18-cent-per-gallon federal tax on gasoline and the 24-cent-per-gallon tax on diesel be suspended.

Many leaders in Congress, including those from his own party, are skeptical of the plan. The Chairman of the House Transportation and Infrastructure Committee, Peter DeFazio (D-OR) and the Chairman of the Senate Environment and Public Works Committee, Tom Carper (D-DE) worry that suspending the gasoline tax would drain needed funds from the Highway Trust Fund. The gas tax, which funds the Highway Trust Fund, is the major source of money for the federal government’s road and infrastructure improvement plans. In last year’s $1.2 trillion-dollar infrastructure bill close to half of the money came directly from the trust fund.

Historically high gas prices and concerns about inflation are forcing the Biden administration to seek quick and immediate relief for consumers. However, whether a gas tax holiday results in lower prices is something many in Congress are doubtful of. Additionally, Congressional Democrats remain worried about the upcoming midterm elections and are balancing their own political futures vs. those of the president. The next few days and weeks will be a test to see if President Biden’s plan on the gas tax can gain support in a closely divided Congress.

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