The potential Gas Prices Relief Act would undermine the recently enacted and bipartisan Infrastructure Investment and Jobs Act (IIJA)
ForContructionPros.com
By Jessica Lombardo
February 20, 2022 The White House and top Democrats are considering a proposal to suspend the roughly 18.3-cents-per-gallon federal gas tax for the rest of the year, which could cut transportation revenue by more than $20 billion. The governors of Arkansas, California, Colorado, Florida, Illinois and Virginia are floating the idea of either rolling back existing gas taxes or preventing scheduled rate hikes from taking effect. Sens. Mark Kelly (D-AZ) and Maggie Hassan (D-NH), each up for re-election in November, introduced S. 3609, the Gas Prices Relief Act. The Senate Democratic caucus is split on whether to support the effort, and some Republican senators have spoken against the proposal. Nevertheless, U.S. Rep. Tom O’Halleran (D-AZ) has introduced companion legislation. The Biden administration has not taken a public position on the proposal. The industry is staunchly opposed to the measure as gas tax funds are used to pay for infrastructure improvements through the Highway Trust Fund. Most federal highway and public transportation programs are funded primarily with taxes on gasoline and diesel fuel, a “user pays” system to support construction and maintenance. And while drivers might see a small savings on gas purchases, the government will certainly lose essential revenue to modernize roads, bridges and transit systems, and slow the transition to cleaner vehicles.
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