U.S. Rep. Kevin Kiley (R-CA) said on Feb. 10 that he is drafting legislation aimed at curbing what he calls excessive state gas taxes, including California’s — currently the highest in the nation at nearly 71 cents per gallon.
“Californians pay the highest gas taxes in America, and they get little to show for it,” Rep. Kiley said on Tuesday. “This bill sends a clear message: states that overtax their citizens to compensate for inefficient spending should not expect unlimited federal support. If Sacramento wants Washington’s help, it should stop punishing drivers.”
The forthcoming proposed bill would penalize states that maintain gas taxes above 50 cents per gallon by reducing certain federal highway funds. States exceeding that threshold would face an 8 percent cut in funding from the National Highway Performance Program (NHPP) and the Surface Transportation Block Grant Program (STBG).
California’s gas tax is a major contributor to the state’s nation-leading fuel prices, adding costs that disproportionately affect working families, daily commuters and small businesses, according to Rep. Kiley, who cited 2025 data from the nonprofit, nonpartisan Tax Foundation and AAA.
The congressman said that the legislation will be designed to encourage fiscal restraint at the state level and ensure federal transportation dollars are not used to offset what he describes as excessive state taxation policies that increase the cost of living.