hold on there's just too much going on in Congress lmao...
Taxes large oil companies' excess profits to fund consumer rebates.
Rep. Ro Khanna (D-CA) with Reps. Magaziner (D-RI) and Tlaib (D-MI).
Introduced in the House, referred to committee.
This bill proposes a new 50% excise tax on 'windfall profits' from crude oil, specifically targeting large oil companies that extract or import more than 300,000 barrels daily. The money collected from this tax would then be used to provide rebates to individual taxpayers to help offset high gasoline prices. The bill was introduced by Representative Ro Khanna, a Democrat from California, with two co-sponsors, and has been sent to the House Committee on Ways and Means for review.
Introduced Mar 17, 2026
The bill, H.R. 7960, was introduced in the U.S. House of Representatives on March 17, 2026. It has been referred to the House Committee on Ways and Means. For the bill to advance, the committee would need to consider, debate, and vote on it. If it passes committee, it could then be scheduled for a vote by the full House of Representatives.
If enacted, major crude oil companies (those extracting or importing over 300,000 barrels daily) would face a new 50% tax on profits when crude oil prices exceed a certain inflation-adjusted baseline from 2025. The funds generated by this 'windfall profits tax' would go into a 'Protect Consumers from Gas Hikes Fund.' From this fund, eligible individuals could receive a 'gasoline price rebate' as a credit against their income tax. The rebate amount would be determined quarterly based on the tax revenues collected and the number of eligible individuals. There would be income limitations, with rebates reduced for individuals earning over $75,000, heads of household over $112,500, and joint filers over $150,000, and it would require a valid Social Security number.
Supporters Say
Supporters argue it helps consumers by rebating funds from excessive oil company profits during high gas prices.
Critics Say
Critics might argue such a tax could discourage domestic oil production or increase gas prices, rather than lowering them.
The bill's title, 'Big Oil Windfall Profits Tax Act,' and the establishment of a 'Protect Consumers from Gas Hikes Fund,' suggest that supporters believe this measure will protect consumers from high gasoline costs by redistributing what they see as excessive profits from large oil companies. Opponents typically contend that taxing oil profits could deter investment in oil production, potentially leading to lower supply and ultimately higher prices or increased reliance on foreign oil. There could also be debate over the administrative complexity of determining and distributing the rebates.