Jun 23, 2022

Biden proposes Federal Gas Tax Holiday

Posted Jun 23, 2022 2:28 PM

President Joe Biden Wednesday called on Congress and states to provide direct relief to consumers facing increased gas and diesel prices.

The price of gas is up dramatically around the world, and by almost $2 per gallon in America, the White House says, “since Putin began amassing troops on the border of Ukraine.”

The federal government charges an 18-cent tax per gallon of gasoline and a 24-cent tax per gallon of diesel.

Those taxes fund highways and public transportation, through the Highway Trust Fund.

But with gas prices near $5 a gallon on average across the country, President Biden is calling on Congress to suspend the gas tax for three months – until the end of September – to give Americans a little extra breathing room as they “deal with the effects of Putin’s war in Ukraine.”

The President is also calling on Congress to ensure that a gas tax holiday has no negative effect on the Highway Trust Fund.