Soaring fuel costs pose threat to Biden administration, overall economic recovery

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3. White House plan to send gas rebate cards complicated by chip shortages

ECONOMIC POLICY

White House plan to send gas rebate cards complicated by chip shortages

Administration officials look at fuel rebates, emergency powers if diesel shortages materialize

By Jeff Stein and Tyler Pager
Updated June 17, 2022 at 1:02 p.m. EDT | Published June 17, 2022 at 10:42 a.m. EDT

Senior White House aides have in recent days explored new ideas for responding to high gas prices and looked again at some that they had previously discarded, desperate to show that the administration is trying to address voter frustration about rising costs at the pump.

Biden officials are taking a second look at whether the federal government could send rebate cards out to millions of American drivers to help them pay at gas stations — an idea they examined months ago before ruling it out. Aides had found that shortages in the U.S. chip industry would make it hard to produce enough rebate cards, two people familiar with the matter said. White House officials also fear there would be no way to prevent consumers from using them for purchases other than gasoline, according to another person familiar with the discussions. Even if the administration embraces the proposal, it would probably require congressional approval and face long odds among lawmakers wary of spending more money.

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