Pres. Joe Biden called on Congress on Wednesday, June 22, to pass legislation that would create a federal tax holiday for three months on gas and diesel fuel to lower prices at the pump, according to NBC News.
The pause would trim 24 cents off a gallon of diesel and 18 cents for gas as the summer driving season is underway. A senior administration official told reporters during a call that the legislation would cost an estimated $10 billion.
"I fully understand the gas tax holiday alone is not going to fix the problem. But it will provide families some immediate relief, give them a little bit of breathing room, so we continue working to bring down prices for the long haul," A Biden statement from The White House reads.
Most Republicans would not back the gas tax holiday
The commander-in-chief asked Congress to make the temporary adjustment in a way that does not harm the Highway Trust Fund, which gets its revenue from fuel taxes. Many lawmakers, mostly Republicans, cited the trust fund as a reason they would not back a gas tax holiday. However, some congressional Democrats have also been critical of the planned legislation, according to Reuters.
Biden also called on companies to increase refining capacity to lower prices in the long term and for gas station operators to come up with ways to bring down costs.
"These are not normal times. Bring down the price you are charging at the pump to reflect the cost you are paying for the product. Do it now. Do it today. Your customers, the American people, they need relief now," Biden urged.
However, the Biden administration will face an uphill battle to draw support in Congress for its proposal to have a gas tax holiday. Several Republicans in Congress have already come out in opposition to the legislation, and even Democratic leaders have expressed some concerns about it.
Democrats face significant problems ahead of the November elections
Senate Majority Leader Chuck Schumer, D-N.Y., sounded pessimistic at Wednesday's weekly news conference, telling reporters, "Well, we tried. And the Republicans blocked it."
House Majority Leader Steny Hoyer, D-Md., said he supports the President's aim to lower prices at the pump, but he said he was not sure whether a gas tax holiday would have the intended effect in terms of the retail price and whether it will save the money of consumers.
House Speaker Nancy Pelosi, D-Calif., also released a statement, saying that Democrats will see where the consensus lies on a path forward for the President's proposal in the House and the Senate, building on the strong bills to lower prices at the pump that were already passed by House Democrats including the Lower Food and Fuel Costs Act and the Consumer Fuel Price Gouging Prevention Act.
Democrats face significant political headwinds ahead of the November midterm elections, as numerous polls find that inflation and gas prices are top concerns for voters, according to CNN.
