H.R. 8252: Gas Tax Reduction Act

This bill, known as the Gas Tax Reduction Act, proposes amendments to existing laws regarding the transportation funding provided to states. The key points of the bill include:

Withholding of Federal Funds

• The bill allows the Secretary of Transportation to withhold a portion of federal highway funding from states that impose a gasoline tax of $0.50 or more per gallon.
• This withholding will be 8% of the federal funds that are typically apportioned to states under specific sections of the law concerning federal aid for highways.
• The reduction in funding will take effect on the first day of the fiscal year after the enactment of this provision, presuming the gas tax remains at or above the stated threshold.

Impact on State Funding

• States that have a gasoline tax at or exceeding $0.50 per gallon may receive less federal funding for transportation projects.
• This change could incentivize states to lower their gasoline tax rates to avoid losing federal support for highway maintenance and infrastructure development.

Clerical Changes

• The bill includes provisions for updating the official documentation and records related to transportation funding laws to include this new section concerning the withholding of funds.

Relevant Companies

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