Momentum grows for pausing gasoline tax after Trump’s backing
Republicans are considering legislation to pause teh federal gas tax to ease rising fuel prices blamed on the Iran war and disruptions to oil routes, including the closure of the Strait of Hormuz. Sen. Josh Hawley and Rep. Anna Paulina Luna say they will introduce a bill to suspend excise taxes of 18.4 cents per gallon for gas and 24.4 cents for diesel, with President Donald Trump also backing a temporary suspension “until it’s appropriate.”
The article notes that it’s uncertain how long the pause would last and whether GOP leadership will advance it. It also cites cost estimates suggesting a one-month suspension could cost about $3.5 billion, or roughly $21 billion for six months without offsets, while emphasizing that gas tax revenue funds road and transit projects via the Highway Trust Fund.some conservatives argue the gas tax should be repealed outright, but others criticize a short-term holiday as a “gimmick,” pointing to the war with Iran as the underlying cause of higher prices. Democrats have previously proposed their own temporary gas tax pause thru October to provide voter relief.
Republicans are exploring pausing the federal gas tax in an effort to provide voters relief as prices at the pump soar due to the war in Iran.
Sen. Josh Hawley (R-MO) and Rep. Anna Paulina Luna (R-FL) have pledged to introduce legislation to suspend the excise taxes, which are 18.4 cents per gallon on gas and 24.4 cents per gallon on diesel, according to the U.S. Energy Information Administration.
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Gas prices have soared since the start of the Iran war due to the closure of the Strait of Hormuz, reaching a national average of $4.55 last week, according to AAA. The price is the highest it has been since 2022, when the national average jumped to $5.01 per gallon.
President Donald Trump threw his support behind pausing the federal gas tax on Monday, saying he would suspend the tax “until it’s appropriate.”
It’s a small percentage, but it’s still money,” he said in the Oval Office.
Earlier Monday, the president told CBS News that he thought it was a “great idea” to temporarily pause the federal tax.
“Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” the president told the outlet.
Shortly after Trump threw his support behind a pause in the federal tax, Hawley and Luna announced they would introduce legislation to approve it, as such a suspension would require an act of Congress.
“American families need this relief on gas prices,” Luna said in a post on X. “My office will be working directly with President Trump to ensure we deliver this win for the American people.”
It’s unclear for how long a pause on the federal gas tax would be, or if GOP leadership will bring such measures to the floor. The Washington Examiner has contacted House Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD) for comment.
The Committee for a Responsible Federal Budget projected in March that suspending the federal gas tax for one month would cost $3.5 billion, while a six-month pause would cost about $21 billion if there are no offsets. Money generated from the federal gasoline tax funds improvements to road and transit projects through the Highway Trust Fund.
“The federal gasoline tax was introduced to build the interstate highway system,” Sen. Mike Lee (R-UT) said on X. “That system is now built … We should now repeal the federal gasoline tax and let each state maintain its portion of the interstate highway system—with its own revenue—as was the plan from the beginning.”
Adam Michel, director of tax policy studies at the Cato Institute, told the Washington Examiner that the “federal gas tax is a relic of the past that should be repealed” entirely.
But Michael also called a temporary gas tax holiday a “gimmick, not a reform.”
Michel continued, “If the administration wants to bring down gas prices, it should end the unconstitutional, unauthorized, and unnecessary war in Iran, which is the reason prices are up.”
TRUMP CALLS TO PAUSE FEDERAL GAS TAX IN BID TO EASE PRICES AT THE PUMP
Democrats have been pushing for a temporary pause to the federal gas tax. Sens. Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) and Rep. Chris Pappas (D-NH) introduced legislation in March to suspend the gas tax until October to provide voters relief.
“Families across Arizona are dealing with high costs on almost everything, and now gas prices are skyrocketing because Donald Trump started a war with Iran,” Kelly said in a statement announcing the legislation. “Arizona families shouldn’t pay the price for Donald Trump’s bad decisions. Suspending the federal gas tax would help bring prices down and give families some much needed relief.”
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