Warnock Pushes for Increase in Mileage Reimbursement Rate as Gas Prices Skyrocket

The average gas price in Georgia is $3.81 a gallon, largely resulting from President Trump's Iran War

Senator Reverend Warnock urged the Internal Revenue Service to increase the standard mileage reimbursement rate and give a bigger tax deduction to Georgia's gig workers and independent contractors

This adjustment would benefit millions of independent contractors and gig workers who often drive thousands of miles a year for work

Adjusting the mileage reimbursement rate would protect Americans whose livelihoods depend on the price at the pump

Washington, D.C. - U.S. Senator Reverend Raphael Warnock (D-GA) requested the U.S. Department of Treasury Secretary Scott Bessent and Internal Revenue Service (IRS) Chief Executive Officer Frank Bisignano make a mid-year adjustment to the 2026 optional standard business mileage reimbursement rate, given the high price of gasoline being experienced across the country.

"For months, millions of Americans have seen their livelihoods affected by the surge in gas prices. President Trump's senseless war in Iran has imperiled the livelihoods of these Georgians," said Senator Reverend Warnock. "I'm simply asking the IRS and Department of the Treasury to consider helping Americans by making an adjustment to the standard business mileage reimbursement rate. It will not fix the problem at the pump, but it will at least provide some relief to American workers."

"Increasing the federal mileage reimbursement rate to reflect the rising cost of gas will help our workers immensely. Our workers are the economic engine behind film, theater, and entertainment," said Samantha Reese, International Alliance of Theatrical Stage Employees 798 Southeastern Region Business Representative. "The current IRS rate is the standard rate used to calculate reimbursement for our workers, who often have to travel long distances for their jobs. Increasing these rates to be more aligned with current reality will keep us-and so many workers across the country-moving."

The price of gas has risen exponentially since President Trump began the war in Iran just over 100 days ago. In January 2026, when the current mileage reimbursement was set, the average retail cost of gasoline nationally was $2.93 a gallon. By May 2026, the cost rose to 4.60 per gallon, placing a significant burden on small business owners and workers.

The IRS is authorized to set the standard business mileage rate every year. In years past, the IRS has made mid-year adjustments to the mileage rate, including in 2005, 2008, and 2011, when higher business, medical, and moving rates were applied mid-year "in recognition of recent gasoline price increases." In 2022, the IRS made a mid-year adjustment to mileage rates due to "recent increases in the cost of fuel."

A copy of the letter can be found HERE, and the text is below:

Dear Secretary Bessent and Chief Executive Officer Bisignano:

Given exceptional increases in fuel costs this year, I request that the Internal Revenue Service (IRS) analyze current gasoline prices and, if appropriate, make a mid-year adjustment to the 2026 optional standard business mileage reimbursement rate.

Gas prices have increased dramatically since the beginning of the year, largely due to President Trump's war on Iran. In January 2026, when the current mileage reimbursement rate was set, average retail cost of gasoline was $2.93 per gallon. In May 2026, that cost rose to $4.60 per gallon. This places a significant burden on small business owners and workers.

As you know, the IRS is authorized to set the standard business mileage rate each year under 26 U.S.C. § 274(d). The IRS has made mid-year adjustments four times since 2005. In 2005, 2008, and 2011, higher business, medical, and moving rates were applied mid-year "in recognition of recent gasoline price increases." Most recently, in 2022, the IRS again made a mid-year adjustment to mileage rates due to "recent increases in the cost of fuel."

Given this precedent, and the exceptional rise in gasoline prices that we have seen so far this year, I encourage the IRS's full and fair consideration, consistent with all agency rules and regulations, of my request to review and, if appropriate, make a mid-year adjustment to the 2026 optional standard mileage reimbursement rate. I look forward to working with you to properly account for these significant increases in the price of gas and, more importantly, to protect Americans whose livelihoods depend on the price at the pump.

Sincerely.

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