Trump’s call for suspending the federal gas tax came as lawmakers and officials reacted to what the Associated Press described as surging fuel prices tied to the Iran war. Speaking at the White House, Trump said he would “move to suspend the federal tax on gasoline,” according to the report, but the president cannot do it without Congress. The proposal quickly drew responses from Republicans and Democrats who have previously backed versions of a gas-tax pause.
The AP reported that the national average gas price was $4.52 a gallon as of Monday, citing AAA. The same report said that figure was about 50% higher than the average price of just under $3 a gallon before Trump began the war against Iran. In explaining the push, Trump connected the idea to helping Americans shoulder what he described as fuel costs driven by the conflict.
The federal gasoline tax is currently 18.4 cents per gallon, with an additional 24.4 cents per gallon on diesel, the AP said. The report also noted that the tax funds federal highway and public transit programs and provides more than $23 billion per year. While Trump told reporters at the White House that the suspension should last “until it’s appropriate,” the AP said he also faced the practical constraint that legislation would be required to change the tax.
According to the AP, Congress has already seen proposals in both parties. Lawmakers from both sides have at various points backed federal gas-tax suspensions, saying a pause would provide relief for families and businesses that depend on cars and trucks for commuting and everyday needs. The AP report said Democrats have previously sponsored similar measures and described a current Senate bill that would suspend the federal tax through Oct. 1, and a parallel House version led by Democratic Rep. Chris Pappas of New Hampshire.
The White House and Trump administration actions that preceded the gas-tax talk also reflected a broader effort to address fuel prices, the AP reported. The administration has released millions of barrels of oil from the U.S. Strategic Petroleum Reserve and temporarily lifted sanctions on some Russian and Iranian oil shipments already at sea. Separately, the report said the U.S. was negotiating with countries reliant on Middle East crude to join a coalition to police the Strait of Hormuz, where about one-fifth of the world’s traded oil normally flows.
Republican reactions to Trump’s remarks varied, with some signaling openness to draft legislation while others questioned the impact on transportation funding. The AP reported that Sen. Josh Hawley of Missouri said on social media Monday that he would introduce legislation to suspend the gas tax, and that Rep. Anna Paulina Luna, R-Fla., said she would introduce a bill in light of Trump’s comments. Senate Majority Leader John Thune said he has not “been a fan” of a gas tax suspension, but that he would hear colleagues who support it, adding that he would rather reopen the Strait of Hormuz to “normalize gas prices” without legislation.
Thune also raised a funding concern tied to the Highway Trust Fund. The AP reported that Thune said suspending the gas tax would create a “big hole” in the trust fund, with implications for future spending. In the AP report, other Republicans focused on the policy tradeoffs, including Sen. Rand Paul, who said, “instead of suspending the tax, we should suspend the war.”
At least some Republican lawmakers who have to defend or win elections also weighed the politics of a fuel-price problem. The AP reported that the ongoing price spike has raised alarms among some Republicans about midterm electoral prospects. It also described Sen. John Cornyn, who is facing a tough runoff race later this month to keep his seat, as asking how roads and bridges would be paid for if the tax were lifted while drawing a distinction between a temporary suspension and a permanent one.
Beyond Capitol Hill, the AP said several states have already taken actions to ease prices by suspending or reducing gas taxes, including Indiana and Georgia. It added that Kentucky and Utah have reduced their state tax, and that other states are weighing similar suspensions or reductions. The AP also reported that industry groups cautioned that cutting the federal gas tax could raise the deficit and undermine long-term highway and transit investment sustainability.
The American Road & Transportation Builders Association, which represents transportation construction, told the AP that the gasoline tax is the single largest source of revenue for federal highway and public transit programs. The group warned that proposed bills would offset lost Highway Trust Fund revenue with general funds, but that the suspension could still raise the federal deficit, according to the AP. The report also said the group cited studies suggesting that many retailers do not pass on the full amount of gas-tax reduction to consumers and noted that state and federal gas taxes are only part of a broader pricing system influenced by global oil prices and other factors.