Trump Supports GOP Push to Suspend Federal Gas Tax

Former President Trump told CBS News he supports suspending the federal gas tax for a period of time. "Yup, 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 said in an interview with White House correspondent Nancy Cordes.

Republicans in Congress moved to introduce legislation that would suspend the federal gasoline tax. Sen. Josh Hawley of Missouri said he planned to introduce legislation to suspend the federal gas tax. Any suspension would require congressional approval.

The federal gas tax is currently 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel. A suspension would deliver savings of roughly 18 cents per gallon at the pump. According to one analysis, that would save a sedan driver up to $2 per fill-up at national average prices.

Gasoline prices reached $4.52 a gallon on Monday according to AAA. That figure is about 46 percent higher than before the late-February U.S. and Israeli strikes on Iran. Filling up a sedan now costs $18 to $25 more per tank than before the conflict began. Even with a federal tax suspension, the same driver would still pay roughly $24 to $32 more per tank than pre-conflict levels.

The federal gas tax helps fund the Highway Trust Fund. Suspending it would reduce revenue by an estimated $1 billion per month. Georgia, Indiana and Utah have taken steps to waive or reduce their own state fuel taxes. State fuel taxes range from 15 cents to about 60 cents per gallon.

Indiana is waiving both its use tax and excise tax on fuel, giving motorists a nearly 60-cent-per-gallon discount; prices at some stations have fallen below $4 as of May 10.

Separately, members of Congress will hold a bipartisan meeting to discuss crypto tax legislation.