The NAM pushed back on the decision by President Biden to instruct Congress to suspend federal gasoline and diesel taxes for three months, highlighting the cost of the program and the limited utility of the action.
The background: On Wednesday, President Biden called on Congress to implement a gasoline tax holiday for the next three months to ease financial pressure at the pump. The holiday would impact the 18.4 cents-per-gallon federal tax on gas and the 24.4 cents-per-gallon federal tax on diesel.
Derailing the infrastructure bill: NAM President and CEO Jay Timmons noted that the federal gas tax is an important source of income for funding the Biden administration’s infrastructure bill.
- “Our nation achieved historic progress with the Bipartisan Infrastructure Law,” said Timmons. “But this move is likely to derail its implementation by suddenly disrupting its funding, delaying critical projects that Americans desperately need and that are vital to manufacturers’ competitiveness.”
Shifting the focus: “Our focus should be on increasing energy production here at home—to make manufacturers more competitive, to bring energy and gasoline prices down and to provide lasting relief for American families,” said Timmons. “We need the same smart, long-term approach that inspired the infrastructure bill to solve today’s energy challenges.”
The NAM’s recommendations: The NAM reiterated a range of recommendations to improve energy security in the U.S., including:
- Restarting and expanding oil and gas leasing on federal lands;
- Prioritizing funding and expediting permitting for traditional and emerging energy options;
- Expanding critical mineral mining and processing;
- Strengthening and diversifying clean energy supply chains;
- Promoting regulatory predictability by refraining from revising air standards until previous ones are met; and
- Upholding the infrastructure law’s One Federal Decision policy.
The last word: “We would be in a better position now if these and other actions had already been taken, and the need to act has only grown more urgent,” said Timmons. “Manufacturers will continue doing everything in our power to be part of the solution.”