State Capitol Update

Multiple proposals focused on the state gasoline and diesel tax have recently been introduced into formal legislation. Senator Lisa Boscola’s (D – Lehigh/Northampton) two-part package was referred to the Senate Transportation Committee on April 23. Senate Bill 1264 (Temporary Suspension of the Gas Tax) and Senate Bill 1265 (Temporary Suspension of the Diesel Tax) are now in a formal legislative format. The bills would provide a 60-day tax holiday for the 57.6-cent gas tax and 74.1-cent diesel tax. Both bills call for the Commonwealth to borrow money (via bonds) to backfill the revenue loss caused by cutting/suspending the diesel tax.

Representative Abby Major’s (R – Armstrong/Westmoreland) proposal (House Bill 2396) was referred to the House Transportation Committee on April 16. This bill would establish a 6-month tax holiday for both the gas and diesel tax and call for a transfer from the state’s Rainy Day Fund to cover the loss revenue.

Other states, including Georgia, Utah, and Indiana, have passed legislation to prompt some type of fuel tax relief. While the proposals are popular for consumers, there are significant funding considerations in Pennsylvania as the General Assembly is negotiating a proposed $53.3 billion 2026-2027 state budget (up 5%+ increase from the current budget) and a depleting Rainy Day Fund. The state Motor License Fund relies on over $2 billion per year from the combined gasoline and diesel tax. Pennsylvania’s fuel taxes directly fund the Motor License Fund, which generates revenue for roads and bridges, PennDOT operations, and partial State Police operations.

Senate Bill 1295 Moves Out of Committee
On April 21, the Senate Transportation Committee passed SB 1295, which amends Title 75 (Vehicles) to establish stricter commercial driver’s license (CDL) qualifications, including mandatory English proficiency standards. Current law directs the Department of Transportation to offer the CDL test in Spanish or English.