Trump backs temporary federal gas tax suspension as prices surge

Donald Trump said he wanted to suspend the federal gas tax “for a period of time” and let it “phase back in” when prices fall, a move he cast as a direct response to the squeeze at the pump. At AAA’s national average of $4.520 a gallon on May 11, that would save drivers 18.4 cents per gallon, or about $1.84 on every 10 gallons. It is a small cut in percentage terms, roughly 4.1% of today’s average price, even after gasoline prices had climbed more than 50% since the start of the Iran war on Feb. 28 and risen 25 cents for the second straight week.

The biggest dollar benefit would go to the people and businesses that burn the most fuel. A commuter filling up once a week would see only a modest monthly change, while households with long drives, delivery fleets and other high-mileage users would collect the largest savings over time. The proposal would not change diesel costs unless Congress broadened it, and the federal diesel tax remains 24.4 cents a gallon.

Any holiday would face a familiar obstacle in Washington: Congress. Suspending the tax would require legislation, and lawmakers would have to decide whether to replace the lost money that flows into the Highway Trust Fund, which pays for federal highway and transportation programs. Previous efforts in Congress have tied a gas-tax suspension to reimbursement for lost trust fund revenue, and a 2026 proposal known as the Gas Prices Relief Act would suspend the federal gas tax through Oct. 1, 2026. In 2022, H.R. 7926 proposed a temporary suspension of highway fuel taxes on gasoline.

The federal gasoline tax has deep roots in American policy. It began in 1932 as a temporary penny-per-gallon levy, was last adjusted in 1993 under President Bill Clinton, and now stands at 18.4 cents a gallon. The federal government has never suspended it nationwide. House transportation officials say the Highway Trust Fund still relies on excise taxes on gas and diesel fuels, which is why any holiday would risk weakening the very road and bridge funding it is meant to ease. Even if Congress approved it, fuel markets could blunt the effect, leaving drivers with less relief than the headline promise suggests.