Trump Endorses Suspension of 18-Cent Federal Gas Tax

President Donald Trump told reporters on May 11, 2026, that he intended to suspend the 18 cents per gallon federal gas tax as national average gas prices head toward $5 per gallon. Such a suspension would require an act of Congress. Democrats in the House and Senate proposed measures to suspend the gas tax in March 2026.

In March 2026, Trump said at a Cabinet meeting that he had “thought about” suspending the federal gas tax. ” An average of 51 cents in taxes and fees is tacked on to every gallon of regular gas pumped in America. Approximately 18 cents per gallon of the taxes and fees on gasoline goes to the federal government.

Some of the federal gas tax revenue goes toward the Highway Trust Fund, which funds highway and mass transit projects. 5 billion per month. The federal gas tax has not been increased since 1993, when Bill Clinton signed the last federal gas tax increase into law.

The 18 cents per gallon federal gas tax rate set in 1993 would be worth 8 cents in 2026 dollars after inflation. Georgia suspended its state gas tax in March 2026. Georgia’s gas tax suspension is set to expire on May 19, 2026.

Taxes and fees on gasoline range from 27 cents per gallon in Alaska to 89 cents per gallon in California. Taxes and fees account for 5% of the cost per gallon of gas in Alaska. Taxes and fees account for 17% of the price per gallon of gas in Illinois.

5% of the price paid per gallon of gas goes to taxes and fees. Local taxes are not included in the NBC News tax and fee data for gasoline. Average gas prices nationwide are up more than 50% since the war launched at the end of February 2026.

Even if all state and federal taxes were suspended, gas prices would still average 35% more per gallon than at the start of the Iran war.

““All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of.” — Energy Secretary Chris Wright. The variation in tax burdens reflects differences in state policies. What consumers pay in state and federal gas taxes depends entirely on where they live.”