Trump Proposes 90-Day Suspension of Federal Gasoline and Diesel Taxes

President Donald Trump said on Monday that he thought a temporary suspension of the federal gasoline tax would be a great idea. Sen. , introduced legislation on Monday that would suspend the federal fuel taxes for 90 days.

4 cents per gallon on diesel. Those taxes generate approximately $500 million per week for construction and repair of roadways and other transit projects. Senate majority leader Thune said Republicans will hear Trump out on the gas tax holiday.

Thune had previously dismissed the idea of suspending the 18-cents-a-gallon levy. Trucking and construction trade groups are raising concerns about President Donald Trump's proposal to temporarily suspend the federal gasoline tax. The industries rely on transportation infrastructure funded by the federal taxes on gasoline and diesel.

Brian Turmail, national spokesman for the Associated General Contractors of America, told CNBC that the tax holiday would undermine funding for highway and transit repairs and is not the best means to help drivers. The American Trucking Association and National Tank Truck Carriers issued a joint statement opposing the gas tax holiday.

The groups stated that because the tax is collected at the wholesale level, temporary suspensions have historically had little impact.

30 per week. Without replacement funds, fuel tax revenues supporting critical investments in highway safety and infrastructure projects would evaporate, hindering the safe and efficient movement of people and goods across the country, the groups said.

Patrick De Haan, head of petroleum analysis at GasBuddy, discussed a potential suspension of the gas tax amid rising fuel costs due to the war with Iran on May 12, 2026.

Suspending the tax would require an act of Congress. " The article was published on May 13, 2026 at 12:55pm.