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

While $100 a month may not totally cover the inflated cost of gasoline, it can help.

Thanks to geopolitical issues, the national average per gallon hovers around $4. For some, it's a bump in the road, an irritating expense to endure until prices go back down. For others, record-high gas prices make it difficult to get to work and run everyday errands. And that's where the Gas Rebate Act of 2022 comes in.

The Gas Rebate Act of 2022 -- introduced in Congress by Reps. Mike Thompson, John Larson, and Lauren Underwood -- would put $100 into Americans' bank accounts every time the national average price for a gallon of gas goes over $4.

Who would qualify?

If the bill makes its way through Congress and the Senate, the gas stimulus payment will go to individuals earning $75,000 or less per year and joint filers earning $150,000 or less. In addition, dependents in these families would also 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 also qualify for stimulus funds, although at a reduced amount. Payments phase out entirely at $80,000 and $160,000.

If those maximum income cutoffs seem familiar, it's because they're the same income limits attached to the first three stimulus payments. As with previous payments, income will be determined by the last tax return filed.

What we don't yet know

Like any Congressional proposal, there are gaps in what we know. It's not until a bill passes both the House and Senate that we're privy to the details. Here are a few questions we're waiting to have answered:

• 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.

States ahead of the curve

Whether the Democratic bill makes its way to President Biden's desk or not, these states have already addressed the issue of high gas prices by approving tax rebates. For example:

Idaho

To help offset the price of gasoline, Idaho residents will receive a tax rebate of $75 per taxpayer and dependent, or 12% of the taxes reported on their 2020 state taxes (whichever amount is higher).

Georgia

Georgia residents who filed 2020 and 2021 tax returns are in for a one-time tax credit thanks to Georgia House Bill 1302. Single filers can expect $250, heads of households are due $375, and joint filers can plan on a $500 tax credit.

Indiana

State lawmakers in Indiana have approved a plan to send residents who've filed their 2021 taxes a refund of $125. It's not much, but does acknowledge the difficulty some will have paying for gas.

New Mexico

The New Mexico legislature voted to give state residents who earn under $150,000 annually a refundable income tax rebate of $500. Single filers with an annual income under $75,000 will receive $250.

California, Maine, Hawaii, New York, Kentucky, and Minnesota also have relief plans under consideration.

Where the federal bill stands

While some bills crawl through approval at a snail's pace, others move at a faster clip. The Gas Rebate Act of 2022 has been referred to the Ways and Means Committee for further study. It's easy to imagine that Congress will not want to sit on this bill for long.

While none of the proposed or enacted legislation will entirely cover inflated gasoline prices, they will each provide some assistance. In the meantime, these tips can help a driver reduce the amount of gasoline they use:

• 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.

Nothing about high gas prices is fun. However, this is not the first time prices have soared and won't be the last. In the meantime, it makes good financial sense to minimize the amount of gasoline used until prices drop.