To combat rising gas prices, House Democrats have proposed a bold new proposal: having the government spend more money.
Reps. Mike Thompson (D-Calif.), John Larson (D-Connecticut), and Lauren Underwood (D-Ill.) have introduced the Gas Rebate Act of 2022, which they claim will help lower-income Americans cope with rising energy prices by issuing small stimulus checks.
In any month where the national average price of gasoline is higher than $4.00 per gallon, the goal is to offer a $100 monthly rebate and $100 for each dependent for the rest of the year.
The rebate payments will be phased out in the same way that the COVID-19 stimulus funds were phased out. The $100 rebate would be available to single filers earning less than $75,000, with the amount gradually increasing to $80,000. According to a press release, joint filers earning less than $150,000 are eligible for the $100 rebate, but the program ends at $160,000.
Inflation, increased demand for gasoline, limited supply, and the war between Russia and Ukraine all conspired to send national gas prices to new highs in March. According to the American Automobile Association, the national average price for a gallon of gas was $4.24 on Wednesday. Gas is around six cents cheaper this week than it was last week, as economists projected after crude oil prices fell last week. However, once the weather improves in the spring and summer, experts predict that gas costs will climb again as more Americans travel.
Meanwhile, prices in other sections of the country remain high. For example, in Los Angeles, California, the average price of a standard gallon of gas has risen to $6.00.
