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ACT's Stance on the Proposed Gas Tax Holiday

Posted: 06/27/2022
Category: Public Policy

The Association for Commuter Transportation is opposed to the proposed federal gas tax holiday for the following reasons: 

  • It is time for the United States to double down on our commitment to Transportation Demand Management (TDM) strategies that provide people with more travel options and reduce their need to drive alone. 
  • It is likely that the 18 cents/gallon reduction will never make it to consumers. 
  • There is no guarantee that the savings from the tax will be passed on to consumers.
  • The federal gas tax of 18 cents/gallon represents a small fraction of the overall cost of fuel. This minimal benefit will have long-term negative impacts on our ability to invest in our nation’s infrastructure and vital public transportation systems and will result in far greater costs to every person that relies on our nation’s roads and public transit. 
  • Reductions in the cost of fuel leads to an increase in driving which increases the demand for fuel. With oil currently in short supply any reduction in the cost of fuel from the gas tax holiday has the potential to be eaten up by an increase in the cost of gas at the pump due to the increase in demand.


Instead of a federal gas tax holiday, we ask the Biden Administration to institute policies that expand public transit and reduce its cost, encourage biking and walking, and incentivize the formation of carpools and vanpools. This would result in permanent reductions in transportation costs for Americans. As a nation let us support and promote the hundreds of regional TDM programs across the country that provide millions of individuals with real and sustainable travel options that reduce their need to drive solo to live a productive life.

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