Legislators are seeking solutions to lessen the pain at the pump as the price of gas continues to linger around $5 per gallon:
Some states have implemented a gas tax holiday, and President Joe Biden has backed legislation that would implement a similar moratorium on the federal gas tax.
A federal “stimulus check” for petrol is an alternative, though, and it offers qualified Americans $100 per month through the end of the year or for as long as gas prices are higher than $4 per gallon.
With their Gas Rebate Act of 2022, Democratic Representatives Lauren Underwood, Mike Thompson, and John Larson put forth the notion in March.
To combat high fuel prices, Democrats propose a $100 monthly gas stimulus.
In a statement on March 17, Thompson said, “Americans are suffering the impact of Vladimir Putin’s illegal invasion of Ukraine at the gas pump. Right now, we must work together on common-sense policy measures to lessen the financial burden that my people are feeling.
Their approach hasn’t advanced too far because of Congress’s stance on additional stimulus giveaways. Individual states, though, have embraced the concept and run with it.
What you need to know about the gas rebate plan is provided below, along with information on who it would benefit and for how long, as well as state-level developments.
The Gas Rebate Act of 2022 is what?
For each month that gasoline prices remain above $4 per gallon in 2022, the law will award eligible Americans $100. A further $100 would be given if they had dependents.
The US overcame the $4 barrier in March and hasn’t turned back since. (In May, the per-gallon average in all 50 states exceeded $4.)
For whom would a rebate be available? Compensation is dependent on income levels, much like with the pandemic stimulus checks:
People making under $75,000 will receive the entire $100. The amount would decrease as your income increased, and anybody who made more than $80,000 would not be entitled to any reimbursement.
The whole $100, which phases out at $160,000, would be given to joint filers making less than $150,000.
Is a gas rebate supported by the White House? According to a June 22 statement from the White House, Biden stated his support for a three-month suspension of the federal gas tax and urged individual states to take comparable cost-cutting measures, such as “consumer rebates and relief payments.”
A national gas rebate card programme was mentioned by the president to reporters as “part of what we’re investigating,” according to Cox Media.
According to The Washington Post, the administration first explored rebate cards in March but decided that it would be difficult to generate enough cards due to the scarcity of computer chips.
Obtaining backing from Congress would be unlikely, and there would be no mechanism to guarantee that people wouldn’t use the cards for transactions other than gas.
Which states specifically are proposing gas rebates? A few places have started offering gas refunds or are considering it.
California
Gov. Gavin Newsom proposed including a gas tax rebate in the state budget in May after attempts to suspend California’s 51-cent gas tax were unsuccessful.
He proposed to give a $400 debit card, good for up to two cars per family, to any household having a car that was registered in the state.
However, he made a deal with the legislature and consented to the suspension of the diesel fuel sales tax.
Additionally, “inflation relief” payments of up to $1,050 per family will be given to residents.
Democratic state senators from North Carolina have suggested providing a one-time $200 fuel stipend to all licenced adult drivers.
According to State Senator Michael Garrett, a co-sponsor of the gas refund measure, that is roughly how much the average North Carolinian spends in-state gas taxes from July to December.
Sponsors claim that the $1.3 billion costs of the scheme could be covered by the state’s estimated $4.241 billion tax surplus.
In a statement, Garrett stated that this strategy “maintains the Highway Fund and the Highway Trust Fund entire, while also collecting revenue from non-residents coming through our state using our roads, highways, and bridges.”
The rebates would be delivered by October 1 if their legislation is approved.
Chicago
Some of the 50,000 prepaid $150 petrol cards and 100,000 prepaid $50 transport cards authorised by the municipal council have already begun to be distributed in The Windy City.
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Anyone interested in taking advantage of the Chicago Moves programme must be at least 18 years old, have a driver’s licence in good standing, and make no more than $73,000 annually, which is the city’s median income.
Applications must be submitted by the first of the month, and until September, winners are selected by lottery each month.
