Proposed Gas Tax Cap Aims to Reduce Trucking Costs Nationally

Congressman Kevin Kiley (R-Calif.) is drafting the Gas Tax Reduction Act to impose a 50-cent-per-gallon federal ceiling on state fuel taxes. States exceeding this limit would face an 8% cut in federal highway funding, potentially lowering diesel costs for truckers. The bill targets states with high diesel taxes, including California, Pennsylvania, Illinois, New Jersey, and Michigan. By narrowing interstate tax disparities, it could simplify cost projections for trucking companies. Supporters argue it curbs overtaxation, while opponents warn it may harm road maintenance funding.