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The White House has privately discussed sending checks to car drivers dealing with high gas prices

Mar 26, 2022, 01:50 IST
Business Insider
President Joe Biden speaks to the press after attending a meeting with the Senate Democratic Caucus on Capitol Hill, on Thursday, Jan. 13, 2022 in Washington, DC.Kent Nishimura / Los Angeles Times via Getty Images
  • The Biden administration is discussing checks to motorists dealing with high gas prices.
  • It's not likely to gain traction in Congress due to Republican opposition.
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The White House is weighing its options on how to reduce high gas prices for Americans. One that's on the table: direct payments to drivers.

The Washington Post reported that was among the measures floated in private discussions among White House aides. Other potential steps included a federal gas tax holiday, a third release of oil from the Strategic Petroleum Reserve, and some incentives to domestic energy producers to ramp up production.

The White House didn't immediately respond to a request for comment.

Gas prices remain high, partly due to the Russian war in Ukraine. The national average of per gallon of gas stood at $4.24, per AAA. It hasn't fallen much over the past week, but it has jumped substantially compared to last month.

Democrats in Congress are also introducing similar ideas of their own. Another plan introduced by Rep. Ro Khanna of California and Sen. Sheldon Whitehouse of Rhode Island would provide quarterly payments to Americans funded by a tax on profitable oil companies. They estimate it would amount to $240 per year for single-filers and $360 for couples.

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Checks for American motorists are not likely to gain traction in Congress. Senate Republicans essentially shut down the idea earlier this week. They assailed it as a "gimmick" that would only contribute to inflationary pressures and step up its cost.

"Clearly what this administration has concluded is that they can throw some gimmicks at this issue," Sen. John Thune of South Dakota, the second-ranked Senate Republican, said Tuesday at the weekly GOP press conference.

But at least one state is preparing to distribute checks to car drivers. California Gov. Gavin Newsom announced on Tuesday that eligible car drivers could get up to two $400 debit cards to cover the cost of gasoline.

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