This legislative proposal, known as the Gas Tax Reduction Act , seeks to amend title 23 of the United States Code by introducing a new provision regarding state gasoline taxes. It directs the Secretary of Transportation to withhold 8 percent of specific federal highway funds apportioned to any state under paragraphs (1) and (2) of section 104(b). This withholding action would be triggered if a state's tax for gasoline is equal to or greater than $0.50 per gallon . The penalty would apply on the first day of each fiscal year after the first fiscal year beginning after the bill's enactment. The overall intent of this measure is to encourage states to lower their gasoline taxes by imposing a financial consequence on those exceeding the specified threshold.