Trump opens door to gas tax holiday as pump prices hit 4-year high

Trump opens door to gas tax holiday as pump prices hit 4-year high

The Trump administration signaled Sunday it could support suspending the federal gasoline tax, marking a modest shift in the White House position on a proposal that has gained traction among lawmakers seeking relief from surging fuel costs.

Energy Secretary Chris Wright said the administration is "open to all ideas" to lower prices for consumers and businesses when asked about a potential gas tax suspension. His comments came as the average U.S. price for regular gasoline climbed to $4.52 per gallon, the highest level in four years.

The remarks represent a slight softening of the White House stance. Just days earlier, a White House official had said the idea was "not currently under consideration." Now, with prices at their peak, the administration appears willing to explore the option, though Wright cautioned that "everything has tradeoffs."

Gas prices have surged more than $1.50 per gallon since the start of the war, creating political pressure on President Trump ahead of midterm elections. Democratic lawmakers, including Senator Mark Kelly of Arizona, have already introduced legislation to suspend the 18.3-cent federal tax on gasoline.

Any suspension would require congressional action, despite Trump's frequent use of executive orders. The federal gasoline tax and the 24.3-cent diesel tax fund the Highway Trust Fund, which finances roads, bridges, and other transit infrastructure. Congress has never enacted a gas tax holiday despite periodic proposals over decades when prices spiked.

The potential relief would be modest. According to estimates from the Bipartisan Policy Center, even a complete suspension would reduce pump prices by only 10 to 16 cents per gallon, leaving consumers with limited help against the broader market pressures driving costs upward.

The administration has already pursued other measures to ease the price spike. The White House has tapped the Strategic Petroleum Reserve and waived the Jones Act to clear bottlenecks at U.S. ports. Yet these steps have done little to offset the underlying supply disruptions, since American retail gasoline prices track global oil markets beyond Washington's direct control.

Wright defended the administration's broader energy stance on television Sunday, acknowledging the "short-term dislocation" caused by the war while arguing that a nuclear-armed Iran would pose a larger long-term threat to regional energy supplies and American interests.

Author James Rodriguez: "A gas tax break sounds good in a campaign speech, but the math doesn't add up to meaningful relief when global oil markets are driving the real damage."

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