President Donald Trump said Monday that he would support temporarily suspending the federal gas tax as Americans continue to feel pain at the pump due to rising fuel prices caused by the war with Iran.
Oil markets have skyrocketed since the war began in late February and have remained volatile amid the shaky ceasefire with the Gulf country. Iran’s closure of the Strait of Hormuz, a critical shipping route for global crude exports, has pushed gasoline prices higher sharply. The current cost of gas in the United States is $4.52 per gallon, according to AAA, which is up almost 52% since the start of the war.
“I’m going to reduce until …,” the president told reporters in the Oval Office, “let me tell you, as soon as this is over with Iran, as soon as it’s over, you’re going to see gasoline and oil drop like a rock.”
Pressed on how long he would suspend the tax, Trump said until “it’s appropriate.” In a phone interview with CBS News on Monday, he said he would support the pause lasting for a “period of time” and that it would be phased back in once gasoline prices decline.
The federal gas tax, which funds highway and infrastructure projects through the Highway Trust Fund, has not been raised since 1993. The tax stands at about 18 cents per gallon for gasoline and about 24 cents per gallon for diesel fuel. Several states have already suspended or have planned to suspend fuel taxes, including Indiana, Georgia and Utah.
Any suspension would require approval from Congress, as the tax rates are set by federal law and cannot be unilaterally paused by the president. Lawmakers would need to pass legislation temporarily halting the levy, likely reviving debates over how to offset billions of dollars in lost revenue for the Highway Trust Fund.
The latest legislation, which was proposed by Democrats in March, would provide general federal funds to make up for the difference. The Bipartisan Policy Center calculated a five-month federal gas tax holiday would cost the trust fund nearly $17 billion, or 46% of the projected revenue for 2026. The BPC estimated that would add $12 billion to the deficit.
Calls to suspend the tax have surfaced during periods of high inflation and surging fuel costs. Similar Democratic-backed proposals to suspend the federal gas tax have repeatedly stalled in Congress, including a 2022 push by the Biden administration and congressional Democrats following Russia’s invasion of Ukraine that never advanced to a vote despite Democrats controlling both chambers at the time.
Energy Secretary Chris Wright told NBC News on Sunday that the Trump administration is “open to all ideas” to lower fuel costs for Americans.
Some Republicans announced on Monday that they would pursue legislation to enact the measure, including Sen. Josh Hawley, R-Mo., and Rep. Anna Paulina Luna, R-Fla.
“This week I will be introducing a bill in the House to suspend the federal gas tax in light of Trump’s recent remarks,” Luna said on X. “American families need this relief on gas prices.”
Charlie Herman contributed to this report.
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