Buttigieg: White House will continue to push for gas-tax holiday to relieve fuel costs

GRAND RAPIDS – U.S. Transportation Secretary Pete Buttigieg touted efforts Monday to ease federal regulations on oil production, pointing to the move as one of several efforts from President Joe Biden's administration to remedy high gas prices affecting drivers across the country.

But he acknowledged there was still more the federal government can do to address high gas prices, saying the White House will continue to lean on Congress to pass a federal gas-tax holiday.

Buttigieg was speaking at an event at the Gerald R. Ford International Airport in Grand Rapids on Monday, accompanied by Michigan Attorney General Dana Nessel and local officials to promote a grant program for airport improvements throughout the U.S. as part of the Bipartisan Infrastructure Law signed in 2021.

While gas prices have decreased on average in recent weeks in Michigan, they remain far above where they were at the same time last year. On Monday, the average price for a gallon of regular unleaded was $4.81 in Michigan — down 41 cents from a month ago, but still $1.63 more than at the same time last year, according to AAA.

More: Michigan gas prices average $4.81 a gallon, down 14 cents in a week

Biden to propose 3-month federal gas tax holiday: What it means for Michigan

Last month, President Joe Biden called for a three-month federal gas-tax holiday, but the measure has not been passed by Congress. A pause on the federal gas tax would save drivers 18.4 cents per gallon for regular gasoline and 24.4 cents per gallon for diesel fuel.

Despite the lack of progress toward a gas-tax holiday, Buttigieg said the administration had taken several steps to relieve high gas prices, including releasing fuel from the strategic petroleum reserve, temporarily waiving restrictions on ethanol sales and pushing for more approved drilling permits to result in oil production.

Buttigieg said the administration will continue to press Republicans in Congress to support a gas-tax holiday, but some Democrats, including Sens. Joe Manchin of West Virginia and Tom Carper of Delaware, have criticized the idea of a gas-tax suspension since it would reduce federal revenues used to pay for transportation and mass transit projects.

"We continue to believe a gas-tax holiday could help take the edge off," Buttigieg said. "While we are seeing some settling of gas prices, they're still — as everybody knows — way too high."

Two Democratic House members from Michigan — Reps. Elissa Slotkin, of Holly, and Dan Kildee, of Flint — have cosponsored legislation to pause the federal gas tax through the end of the year. That bill, introduced in February, remains languishing in committee, according to the congressional website.

Higher prices for fuel and other products due to inflation are likely to be central issues in November's midterm elections for voters, should they continue at their current trajectory. About 40% of adults named inflation as a priority for the government to address, according to an Associated Press-NORC Center for Public Affairs Research poll in June.

Buttigieg acknowledged the political calculus of addressing economic concerns like higher gas prices, pointing to federal infrastructure investments as a measure to improve the lives of Americans.

"Sometimes these conversations about infrastructure start to get very abstract," he said. "We're talking in terms of millions and billions (of dollars), we're talking years and decades, but really what we're talking about is creating jobs — some of which are now hiring as we speak — in terms of construction, and then delivering assets that are going to serve people well for years to come or for the rest of their lives.

"It's part of the bigger picture. We've got to be dealing with inflation and that's why it's the president's top economic priority."

The Gerald R. Ford International Airport, where the event was held, was the recipient of a grant worth $8.6 million through the Bipartisan Infrastructure Plan. The grant funding will go toward the installation of passenger boarding bridges, per the Department of Transportation

Contact Arpan Lobo: alobo@freepress.com. Follow him on Twitter @arpanlobo. Become a subscriber today.

This article originally appeared on Detroit Free Press: White House will continue to push gas-tax holiday, Buttigieg says