Stimulus Update: Here's Who Can Expect to Receive the Proposed $100 Monthly Gas Stimulus Payment

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$100 a month can help cover the inflated cost of gasoline.

Key points

• The Gas Rebate Act of 2022 would provide $100 per month to defray the cost of gasoline.
• Income limits determine who will be eligible for the stimulus payment.

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The national average per gallon is around $4. It is an expense that can be difficult to endure until prices go back down. Record-high gas prices make it difficult to get to work. The Gas Rebate Act of 2022.

Every time the national average price for a gallon of gas goes over $4, Americans would get $100 into their bank accounts.

Who would qualify?

The gas payment will go to people earning less than $150,000 a year if the bill is passed. The dependents of these families would be eligible for $100 per month.

Individuals earning between $75,000 and $80,000 and joint filers earning between $150,000 and $160,000 would be eligible for the funds. The payments are phased out at $80,000 and $160,000.

The income limits attached to the first three payments are the same as the maximum income cutoffs. Income will be determined by the last tax return filed.

What we don't yet know

There are gaps in the proposal. We don't know the details until a bill passes both the House and Senate. We are waiting to have answered a few questions.

• To date, there is no word on how the new gasoline stimulus program will be funded, whether new funds will have to be located or if money set aside for other projects will be repurposed.
• We have no indication whether any Republican lawmakers are willing to sign on to the proposal. The three representatives who designed the bill are Democrats. Today's partisan landscape makes it difficult for a lawmaker to cross party lines -- even if it's in the best interests of their constituents back home.
• The proposed Gas Rebate Act of 2022 is slated to run through the remainder of 2022. There's no word on whether there's a provision that allows it to be extended into 2023.

The states have already addressed the issue of high gas prices by approving tax refunds, even if the Democratic bill does not make it to President Biden's desk. For example:

Idaho

Idaho residents will receive a tax rebate of $75 per taxpayer and dependent, or 12% of the taxes reported on their 2020 state taxes, to help offset the price of gasoline.

Georgia

Georgia residents who filed tax returns in 2020 and 2021 will be eligible for a one-time tax credit. Head of households have to pay $375, single filers have to pay $250, and joint filers have to pay $500.

Indiana

Residents in Indiana who have filed their taxes in 2021 will be getting a $125 tax refund. It is not much, but acknowledges the difficulty of paying for gas.

New Mexico

New Mexico residents who earn less than $150,000 a year will be given a $500 income tax rebate. $250 will be given to single filers with an annual income under $75,000.

Relief plans for California, Maine, Hawaii, New York, Kentucky, and Minnesota are being considered.

Where the federal bill stands

Some bills move at a faster pace than others. The Ways and Means Committee is studying the Gas Rebate Act of 2022. Congress will not want to sit on this bill for a long time.

Some assistance will be provided by the proposed or enacted legislation, even though they won't completely cover inflated gasoline prices. These tips can help reduce the amount of gasoline a driver uses.

• Drive the speed limit. Every mile per hour over 50 equals approximately $0.30 per gallon.
• Drive light. Every extra 100 pounds in (or on) a vehicle reduces mileage by about 1%.
• Reduce idling time. Every half hour idled uses up a quarter to a half-gallon of fuel.
• Maintain the vehicle. The better a car is maintained, the more fuel-efficient it will be.
• Don't slam the brakes. Sudden stops and accelerations burn more gas than gradually changing speed.

High gas prices are not fun. This is not the first time prices have gone up and will not be the last. It makes sense to reduce the amount of gasoline used until prices go down.

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