Lawmakers Debate Proposal to Suspend Federal Gas Tax

Capitol Hill lawmakers are divided over President Trump’s proposal to suspend the federal gas tax as average gasoline prices reached $4.51 a gallon and diesel hit $5.66 amid the ongoing conflict with Iran. Democrats urged an end to the war rather than temporary relief measures.

Republicans offered competing ideas ranging from backing the tax suspension to expanding access to cheaper ethanol-blended fuel or maintaining pressure on Iran. The federal gas tax stands at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel.

A suspension would deliver that amount in direct savings at the pump. Sen. Josh Hawley introduced legislation Monday to suspend the tax for at least 90 days with a possible additional 90-day extension if prices remain high. Trump backed the idea the same day.

"He’s got to bring this war to an end if he wants these gas prices to come down," one Democratic senator said. Both argued that ending the war would address the root cause of higher fuel costs. Some Republican lawmakers expressed support for considering the suspension to ease broader economic pressure.

One noted that higher gas prices raise costs for groceries and other goods. Others argued that year-round sales of E-15 ethanol-blended gasoline would deliver larger savings of 30 to 40 cents per gallon plus an additional 10 to 15 cents from related measures.

E-15 is currently restricted in summer months under Environmental Protection Agency pollution rules. While some focused on lowering pump prices, other Republicans called for continued or escalated action against Iran. One stated that finishing pressure on the IRGC would be preferable despite the fuel cost consequences.

The same lawmaker described Iran’s government as the most ruthless enemy over four decades and warned that a nuclear-armed Iran would threaten the United States and the region. Arab allies recognize the danger but view regime change cautiously, according to lawmakers.

Gas prices have risen sharply since the conflict with Iran began. The suspension proposal aims to provide immediate but limited relief while debate continues over longer-term policy responses.

Lawmakers from both parties have floated alternatives to the gas tax suspension. The tax suspension legislation would pause collections for a minimum of 90 days. An extension would require prices to stay elevated after the initial period. Support for the suspension has come from some members in both parties though the depth of backing remains unclear.

Democrats largely dismissed it as a gimmick that fails to address the war’s impact on energy markets.

National average gasoline prices stood at $4.51 a gallon as of Wednesday according to AAA data. Diesel fuel averaged $5.66 per gallon over the same period. The increases coincide with escalating tensions and conflict involving Iran. Lawmakers on both sides of the aisle linked the price surge directly to those events though they diverged sharply on solutions.

A gas station sign in Victorville, California displayed unleaded and diesel prices in March 2026. The visible impact on consumers has intensified the Capitol Hill debate over immediate relief versus strategic policy. >"He’s got to bring this war to an end if he wants these gas prices to come down.

" — Sen. Chris Murphy, D-Conn. (Fox News) >"I think that year-round E-15 is a better idea. " — Sen. Roger Marshall, R-Kan.