Bill Filed in House Would Boost Federal Fuel Tax, Tie to Inflation

- Rep. Earl Blumenauer (D-Oregon) announced the introduction of a bill into the U.S. House that would raise per-gallon fuel taxes on gasoline and diesel by five cents a year for five years — and then tie the fuel tax rate to inflation — as a means to raise revenue for surface transportation infrastructure.

In addition, the Rebuild America Act would compel Congress to replace the fuel tax with a “more equitable, stable source of funding” by 2029, according to the bill’s text.

Under the plan, the per-gallon tax on diesel would climb from its current 24.3 cents a gallon to 49.3 cents a gallon in 2023. The 24.3-cent-per-gallon rate has been in effect since 1993, along with the 18.3-cent rate for gasoline. The tax has lost its ability to fund the Highway Trust Fund due to inflation and more fuel-efficient vehicles in that 25-year period. Under Blumenauer’s plan, the per-gallon gasoline tax would climb to 43.3 cents in 2023.

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