President Donald Trump said Monday he would support a temporary suspension of the federal gas tax, marking a significant shift in energy policy that has already sparked competing legislative efforts on Capitol Hill.
When asked by reporters whether he would suspend the 18-cent-per-gallon federal gas tax, Trump answered affirmatively and said it would remain suspended "until it's appropriate." He told CBS News that suspending the tax was "a great idea" and outlined a phased approach: "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."
Trump linked the tax suspension to broader geopolitical developments. "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," he said, suggesting the suspension would be temporary in nature.
The comments arrived just a day after Energy Secretary Chris Wright told NBC News that the administration was "open to all ideas" regarding gas price relief, including the possibility of pausing the federal gas tax.
Republican lawmakers moved quickly to capitalize on the president's position. Sen. Josh Hawley of Missouri announced Monday that he was introducing legislation to suspend the gas tax. Rep. Anna Paulina Luna of Florida said she would put forth a House bill to suspend the tax, calling for "relief on gas prices" for American families and pledging to work directly with Trump's office to "deliver this win for the American people."
The proposal is not entirely new. Democrats introduced their own gas tax suspension bill in March, which would have paused the tax until October. That measure has stalled in Congress. Rep. Chris Pappas of New Hampshire and Sen. Mark Kelly of Arizona led that earlier effort. Pappas responded to Trump's endorsement by posting on X that "This should have happened months ago" and urging Congress to "pass it this week."
The federal gas tax funds the Highway Trust Fund, which supports highway and mass transit infrastructure programs. A five-month suspension could cost the government billions in revenue allocated to that fund during the fiscal year, according to the Bipartisan Policy Center. The fiscal impact of a full suspension remains uncertain, particularly regarding its duration.
Even if suspended, the tax cut may not translate to proportional relief at the pump. The Bipartisan Policy Center estimated that consumers would likely see gas prices fall by 10 to 16 cents per gallon, while gasoline suppliers would capture the remaining benefit of the 18-cent reduction. With the national average standing at $4.52 per gallon on Monday, the actual savings would be modest compared to the full tax rate.
Gas prices have surged more than 50% since the start of the Iran conflict, driving consumer frustration and political pressure on the administration to act. The proposal reflects Trump's focus on cost-of-living issues as a central campaign message.
Author Sarah Mitchell: "Trump's gas tax gambit is good politics but mediocre policy, and Republicans will struggle to explain why consumers won't pocket the full 18 cents."
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