The price for a gallon of gas is unbearably high for many Americans. There are places where you’ll pay more than $6 a gallon, but it depends on the state and local resources. Tap or click here for a hidden map feature that will save you money on gas.
Things have gotten so bad that the U.S. government is looking to step in with much-needed financial relief. Like stimulus checks during the COVID pandemic, there are talks about a gas stimulus to give Americans relief.
Read on to see how this plan would work, who qualifies and how much you can expect to get.
Here’s the backstory
While nobody can agree on the correct course of action, a broader view of the gas price situation could be addressed through a stimulus check. Democratic Reps. Lauren Underwood, Mike Thompson and John Larson first proposed a break for drivers in March.
The proposed Gas Rebate Act of 2022 would be similar to previous stimulus checks, and criteria will be set to determine how much you get. In the initial statement, Thompson said, “We must work together on common-sense policy solutions to ease the financial burden that my constituents are feeling.”
Thompson cited the Russian invasion of Ukraine as a reason for higher prices. Unfortunately, the trio failed to gather enough support in Congress, and the plan has stalled for now. Congress might still feel the COVID stimulus’s pinch and be reluctant to roll out another program.
How much would you get?
The Gas Rebate Act of 2022 would see some Americans receive a $100 check for every month left in the year when the average gas price is more than $4 a gallon. If you have dependents, you could receive another $100.
A sliding scale on your income is possible, with individuals earning less than $75,000 a year getting the complete $100. You’ll see less of the rebate if your income is more than that.
According to the proposed bill, here’s how the payments would be calculated:
- $100 for single filers earning less than $75,000 and phased out to $80,000.
- $100 for joint filers earning less than $150,000 and phased out at $160,000.
Even though the proposed Gas Rebate Act of 2022 hasn’t gotten off the ground yet, it hasn’t stopped some states from introducing their own relief plans.
Some states have looked toward a gas tax holiday to relieve some of the pressure and reduce prices. For example, California is temporarily scrapping its 13% sales tax on diesel, and five other states have done the same.
- California suspended the sales tax on diesel and will give “inflation relief” checks of up to $1,050 per family.
- North Carolina plans a one-time $200 check for all licensed adult drivers.
- Chicago has its own system, called the Chicago Moves plan. The city will hand out 50,000 prepaid $150 gas cards and 100,000 prepaid $50 transit cards.
Federal gas tax relief
The lifting of the gas tax is made possible through the Gas Tax Relief Act, which temporarily halts the federal fuel tax. How long it will last is unclear. President Biden signed off on the Act until September. Others are lobbying for it to continue into early next year.
For consumers, this means a reduction of about 18.3 cents a gallon for gas and 24.3 cents for diesel.