Cotton Introduces Bill to Lower Gas Prices for Arkansans

FOR IMMEDIATE RELEASE Contact: Tatum Wallace or Hannah McCarthy September 22, 2026 Cotton Introduces Bill to Lower Gas Prices for Arkansans WASHINGTON —Senator Tom Cotton (R-Arkansas) today introduced legislation to lower gas prices for Arkansans by cutting costs and increasing domestic production. The Supply Relief and Domestic Production Cost Reduction Act would cap onshore royalties, cut lease and permitting-related costs, and increase domestic production for 180 days when fuel prices, inventories, production constraints, or other emergencies indicate supply stress. “Arkansans are rightfully feeling pressure at the pump. My bill would lower prices by cutting red tape and boosting American energy production,” said Senator Cotton . Text of the bill can be found here . The Supply Relief and Domestic Production Cost Reduction Act would: Create a 180-day “supply shortage period” when fuel prices, inventories, production constraints, or an energy emergency indicate supply stress, with extensions available if the conditions persist. Lower federal oil and gas production costs by capping onshore royalties at 8%, eliminating royalties for marginal wells for 24 months, and cutting royalties on incremental new production from existing leases by 50% for 36 months. Cut lease and permitting-related costs during shortage periods by reducing rental payments, lowering minimum bids, and waiving or reducing certain administrative fees tied to drilling and production approvals. Provide tax incentives to boost domestic production, including immediate expensing for upstream equipment, suspension of certain federal excise taxes on domestic crude oil, and a new credit for incremental production by small producers. Expand access to federal energy resources and protect production by requiring quarterly lease sales during shortage periods, extending leases delayed by permitting or litigation, and limiting federal shut-in orders. ###