Congressman Greg Steube (R-Fla.) introduced a bill to provide relief to Americans at the gas pump amid the rise in fuel costs.
The American Fuel Affordability Act aims to lower diesel prices and expand American refining capacity to reduce long-term fuel costs.
“Americans are paying far too much for diesel, and that cost gets passed down to families on just about everything they buy,” Rep. Steube said. “My bill gets rid of the federal diesel tax to bring prices down now and makes it easier to build new refineries at home.”
Bill Repeals Federal Diesel Tax
The legislation seeks to repeal the 24.3-cent federal diesel tax while also ensuring that the Highway Trust Fund and Leaking Underground Storage Tank Trust (LUST) Fund remain whole through U.S. Treasury general fund transfers.
Currently, the federal excise tax on diesel funds both the Highway Trust and LUST funds, providing 24.3 cents to the former and 0.1 cent to the latter.
The bill would ensure that national highway construction and maintenance, mass transit programs, and environmental cleanup processes from underground fuel storage tank leaks remain intact through the U.S. Department of the Treasury’s General Fund.
Legislation Incentivizes Domestic Refining
To boost American oil refining, the bill offers a 35% tax credit for investment in constructing new U.S. refineries.
The legislation will provide a 5-cent-per-gallon production credit for gasoline and diesel produced at these new qualifying facilities during their first 10 years in operation.
Additionally, investors will be able to write off 100% of the refineries’ construction costs under the bill.
“The American Fuel Affordability Act takes a supply-side approach to fuel affordability by incentivizing additional domestic refining capacity without imposing export restrictions that could discourage refinery utilization and production,” Congressman Steube’s website affirmed.
White House's Potential Plan To Ban U.S. Diesel Exports
Rep. Steube’s effort comes just days after reports indicated that Trump administration officials were discussing the possibility of banning U.S. diesel exports for 90 days.
Recently, Congressman Andy Harris (R-Md.) also introduced a bill suspending the federal fuel tax until the end of 2026.
As of Sept. 25, 2026, the average price of diesel in Florida sits at roughly $6.17 – compared to $6.50 nationwide.
