Drivers would no longer pay federal fuel taxes, but companies would pay a new tax on greenhouse gas emissions.
This bill would end federal taxes on motor vehicle and aviation fuels. Instead, it would create a new tax on greenhouse gas emissions from fossil fuels and certain industrial activities, starting at $40 per metric ton in 2027. Most of the money from this new tax would go into a fund to pay for infrastructure projects, energy research, and grants for low-income households and displaced energy workers.
Today, federal taxes are collected on motor vehicle and aviation fuels, and there is no broad federal tax on greenhouse gas emissions. The EPA currently has the authority to regulate greenhouse gas emissions based on their climate effects. After this bill, federal fuel taxes would end, and a new tax on greenhouse gas emissions would be put in place, with most of the money going to infrastructure and other programs. The EPA's power to regulate greenhouse gas emissions based on their climate effects would also be temporarily limited.
HR 3338 · 119th Congress · May 13, 2025 · AI Summary by gemini-2.5-flash · 9/10
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3 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.