Representative Angie Craig Calls on Congress to Suspend Federal Gas Tax to Lower Prices at the Pump

WASHINGTON, DC — Today, U.S. Representative Angie Craig cosponsored the Gas Prices Relief Act, which would help lower high gas costs for Minnesota families by temporarily suspending the 18.4 cent federal gas tax until January 1, 2023. The COVID-19 pandemic, supply chain bottlenecks and ongoing war in Ukraine have had harmful effects on our nation's economy and working families, driving up prices at the gas pump and the grocery store. Craig's legislation would provide relief for Minnesotans struggling with rising prices by temporarily eliminating federal taxes on fuel purchases, which would substantially lower costs for consumers.

"I know that Minnesotans are struggling to keep up with gas prices, and I share their frustration," said Representative Craig. "In these difficult times, Congress must do all it can to lower costs for working families – especially at the gas pump. That's why, today, I am joining the effort to temporarily suspend the national gas tax and provide some much-needed relief for American consumers."

Craig also called on Minnesota state leaders to temporarily pause the 28.5 cent per gallon state gasoline tax for the rest of the year. Taken together, a federal and statewide gasoline tax holiday, especially during the summer months, could cut gasoline prices by roughly 47 cents per gallon.

"Extraordinary times call for extraordinary measures – which is why I believe that state leaders must work together to institute a temporary state gas tax holiday to lower prices for working families in Minnesota," said Representative Craig. "As I work to enact a temporary federal gas tax holiday in Washington, I urge Governor Walz, Majority Leader Miller, Speaker Hortman and all elected officials to work together to deliver much-needed relief to Minnesotans at the state level as well."

In order to ensure that Big Oil returned any potential savings to Minnesota consumers, Craig also co-sponsored the Stop Gas Price Gouging Tax and Rebate Act. This legislation would create a windfall profit tax on excessive corporate profits made by oil companies and return the revenue to American consumers in the form of a tax rebate.

The Gas Prices Relief Act will lower high gas prices and deliver much-needed economic relief to Americans across the country by: 

• Suspending the 18.4 cents per gallon federal gas tax  until January 1, 2023. Currently, the national average for the cost of a gallon of gas is more than one dollar higher than it was at the same time last year.
  
• Passing tax savings to Americans, rather than oil and gas companies, by requiring the Secretary of the Treasury to monitor the program in order to ensure oil and gas companies pass along the savings at the pump to consumers. The bill also encourages the Secretary to take appropriate enforcement actions to ensure consumers see these savings.
  
• Maintaining the integrity of the Highway Trust Fund by requiring the Department of the Treasury to make general fund transfers to keep the Highway Trust Fund solvent. 

To read the text of the Gas Prices Relief Act, click here. 

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