Diesel Prices Relief Act of 2026

The "Diesel Prices Relief Act of 2026" proposes a temporary suspension of the federal diesel fuel tax, setting the rate to zero for most diesel fuel from its enactment until January 1, 2027, and eliminating the associated Leaking Underground Storage Tank Trust Fund financing rate. To prevent financial shortfalls, the bill mandates that the Secretary of the Treasury transfer funds from the general fund to both the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund, compensating for the revenue lost due to the tax holiday. A key policy objective is to ensure that the benefits of this tax reduction are immediately passed on to consumers . The bill explicitly states that transportation motor fuels producers and dealers should reduce prices to reflect this tax cut, and it grants the Secretary of the Treasury authority to enforce this consumer benefit to ensure lower prices at the pump.