Walz Calls For Federal Gas Tax 'Holiday' To Curb Rising Costs

MINNESOTA — Minnesota Gov. Tim Walz on Tuesday joined with fellow Democratic governors in urging Congress to suspend the federal gas tax until the end of 2022.

Walz co-signed a letter that calls for leaders in the U.S. House and Senate to consider the Gas Prices Relief Act, which would temporarily implement a “federal gas tax holiday” and stop collection of the tax — about 18 cents per gallon — for the rest of the year.

The Gas Prices Relief Act would use general funds to cover the lost gas-tax revenues and keep the Highway Trust Fund solvent.

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A suspension of the federal gas tax would “relieve Americans of the financial stress caused by increased gas prices amid international crises and rising inflation,” the governors wrote Tuesday, citing a AAA report that states the national average gas price is more than a dollar higher than it was in 2021.

“At a time when people are directly impacted by rising prices on everyday goods, a federal gas tax holiday is a tool in the toolbox to reduce costs for Americans, and we urge you to give every consideration to this proposed legislation,” the letter states.

Wisconsin Gov. Tony Evers, Michigan Gov. Gretchen Whitmer, Pennsylvania Gov. Tom Wolf, Colorado Gov. Jared Polis and New Mexico Gov. Michelle Lujan Grisham also signed onto the letter.

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It was sent shortly after President Joe Biden announced a ban on Russian oil imports as part of the U.S. sanctions against Russia for its invasion of Ukraine.

The average price for a gallon of gas Wednesday in Minnesota was about $3.93, while the national average was about $4.25, according to AAA.

The average price in Minnesota was $3.48 just a week ago, while the average price was $2.75 a year ago, AAA’s data show.

The state recorded its highest average price for a gallon of regular gas — $4.27 — in May 2013, according to AAA.

Democratic Minnesota lawmakers are also eyeing a state gas tax holiday from Memorial Day through Labor Day, the Twin Cities Pioneer Press reports. Minnesota’s gas tax is 28.5 cents per gallon.