Key facts
- Rep. Harris' bill proposes pausing federal gasoline and diesel taxes through year-end.
- The federal gasoline tax is 18.4 cents per gallon and the diesel tax is 24.4 cents per gallon.
- The Highway Trust Fund, which finances federal highway and mass transit projects, is nearing insolvency.
- The trust fund is projected to be exhausted in 2028.
- House Transportation and Infrastructure Chair Sam Graves voiced concerns about the bill's impact on state DOTs and projects.
A proposal to temporarily suspend federal gasoline and diesel taxes has encountered significant opposition within the House of Representatives, jeopardizing its passage. The bill, introduced by Rep. Harris, aims to pause the 18.4 cents per gallon federal gasoline tax and the 24.4 cents per gallon federal diesel tax through the end of the year.
The funding generated by these taxes primarily supports the Highway Trust Fund, which is crucial for financing federal highway and mass transit initiatives. However, the trust fund faces insolvency due to factors including increased vehicle fuel efficiency, slower growth in miles driven, and a lack of legislative action to either raise taxes or reduce spending. Projections indicate the fund could be exhausted by 2028, necessitating a transfer from the Treasury Department's General Fund to cover shortfalls.
Unlike some previous legislative attempts, Harris' bill does not include provisions to offset the lost revenue for the Highway Trust Fund. This omission, coupled with concerns about the potential impact on state departments of transportation and ongoing projects, has drawn criticism from key Republicans. House Transportation and Infrastructure Chair Sam Graves confirmed his attendance at a meeting with GOP leadership and Harris regarding the gas tax proposal, expressing worries about the uncertainty and disruption such a suspension could create. Rep. Clay Higgins, a member of the House Freedom Caucus, publicly criticized Graves' handling of the matter, suggesting the bill was effectively killed in committee.