California’s 3rd Congressional District Representative, Kevin Kiley, is proposing legislation in Congress to restrict states from imposing excessive gas taxes. Currently, California’s gas tax is close to 71 cents per gallon, ranking the highest in the nation.
The Gas Tax Reduction Act aims to reduce federal funding from the National Highway Performance Program (NHPP) and Surface Transportation Block Grant Program (STBG) by 8% for states with gas taxes exceeding 50 cents. Apart from California, other states with gas tax rates over 50 cents include Washington, Illinois, Indiana, and Pennsylvania. The proposal seeks to encourage states to adopt financial responsibility measures to ensure federal funds are not used to subsidize states that increase living costs through overtaxation.
According to data from the American Automobile Association (AAA) on Tuesday (17th), the average gas price in the United States is $2.917, while in California, it stands at $4.587, which is $1.67 (57%) higher.
The main reasons for California’s high gas prices are the state’s gas tax, clean energy fees, and reduced oil production. With the highest gas tax in the nation, California’s working class, commuters, and small businesses bear disproportionate burdens. If the proposal is approved, Californians can hope for a reduction in gas prices.
Reducing California’s gas tax has always been a goal pursued by Republican lawmakers in the state, but all previous appeals and attempts have ended in failure.
“Californians pay the highest gas tax in the nation yet receive little to no benefit,” said Kiley. The Gas Tax Reduction Act delivers a clear message that states overly taxing to cover expenses should not expect unlimited support from the federal government. He emphasized, “If Sacramento (California’s capital) wants help from Washington, they should stop penalizing drivers.”
A spokesperson from Governor Newsom’s office responded to Kiley’s proposal, stating, “Assemblyman Kiley is once again misconstruing the facts and is unaware of the actual consequences. California’s gas tax – approved by voters in 2018 – is used to fund safer roads, bridge repairs, and measures proven effective in reducing air pollution and protecting public health.”
The spokesperson added, “Cutting transportation funds will not benefit Californians; it will only mean more potholes, longer commuting times, and worse air quality.”
According to the nonpartisan Legislative Analyst’s Office, California can generate over $7.6 billion annually from vehicle fuel taxes for road construction and improvement. The gas tax is adjusted every July 1st based on the inflation index, starting from 29.7 cents in 2017 to 61 cents in July 2025, with a further increase scheduled this July.