Donald Trump Moves to Suspend Federal Gasoline Tax Amid War With Iran, Congress Must Approve

President Donald Trump said Monday he will move to suspend the federal tax on gasoline to help Americans cope with surging fuel prices tied to the war with Iran, but Congress would have to approve any suspension.

“Trump is floating a gas tax holiday amid rising fuel costs”

ABC News

As of Monday, the average national gas price was $4.52 a gallon, according to the AAA, and the federal tax is currently set at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel.

ABC News

In Oregon, U.S. Sen. Ron Wyden said, “With gas in Oregon nearing or above $6 a gallon in some spots, I’ll look at any proposal aimed at bringing down costs,” while U.S. Sen. Jeff Merkley said pausing the gas tax would help “modestly — 18 cents per gallon” but that “The only real solution is for President Trump to end this war with Iran now.”

In Washington state, Gov. Ferguson blamed the war for rising prices and urged residents to contact the White House, saying, “Since March, gas prices in Washington have gone up $1.38 per gallon for one reason only: President Trump’s decision to go to war against Iran.”

Trump’s proposal would require Congressional approval, and ABC News noted the gas tax “has never been successfully suspended,” even as several Republican lawmakers introduced measures in both chambers.

ABC News said Rep. Jeff Van Drew introduced legislation to suspend the federal gas tax for 18 months, eliminating current federal fuel taxes including 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel and kerosene, while Sen. Josh Hawley announced a 90-day suspension with an option to extend another 90 days.

CBS News

Senate Majority Leader John Thune told reporters off-camera Monday afternoon at the Capitol, “I've not, in the past, obviously been a fan of that idea,” and later said, “The best way to get gas prices to normalize, in my view, is to get the Strait open.”

On the consumer side, CNN said the pause would likely provide limited relief even if it happens, quoting Kent Smetters that “That 18 cents doesn't really amount to a whole lot, in my mind,” and adding that a federal suspension could wind up pushing up prices more and would hurt the Highway Trust Fund.

Multiple outlets tied the gas tax holiday to the Highway Trust Fund, with KATU reporting that the federal fuels tax provides the vast majority of funding flowing into the federal Highway Trust Fund and warning that suspending the gas and diesel tax without replacement revenue sources “would lead to significant revenue loss.”

“President Donald Trump and congressional Republicans are proposing suspending the federal gas tax as prices at the pump continue to soar ahead of the 2026 midterm elections”

CNBC

KATU also said the federal tax provides more than $23 billion per year in revenue for federal highway and public transit programs, while CNN said a five-month suspension would reduce revenue by about $17 billion, or 46% of total gas tax revenue projected to flow to the fund this fiscal year.

CNN reported that the fund is set to run dry in fiscal year 2028 and said lawmakers could face a choice between filling a larger gap with taxpayer funds or reducing spending on highways, bridges and mass transit.

In Texas, the Texas Tribune described how James Talarico aligned with Trump after the president endorsed a temporary gas tax holiday, while U.S. Sen. John Cornyn said, “There's a difference between a temporary suspension and a permanent suspension,” and said he could live with a temporary suspension “getting through this sort of bumpy time because of uncertainty about energy prices.”