politics
Trump Proposes 90-Day Suspension of Federal Gasoline and Diesel Taxes
President Donald Trump on Monday endorsed a temporary suspension of the federal gasoline tax amid rising fuel costs tied to the war with Iran. Sen. Josh Hawley introduced legislation for a 90-day pause that would affect the 18.4-cent-per-gallon gasoline levy and 24.4-cent diesel tax. Trade groups warned the move would undermine highway funding with limited relief for drivers.
naturalnews.comAudio version
Tap play to generate a narrated version.
President Donald Trump said on Monday that he thought a temporary suspension of the federal gasoline tax would be a great idea. Sen. [name redacted in sources], introduced legislation on Monday that would suspend the federal fuel taxes for 90 days.
The federal excise tax is 18.4 cents per gallon on gasoline and 24.4 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 John 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. According to source reporting, the proposal is framed as a 90-day relief measure amid rising fuel costs driven by the war with Iran.
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 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 on pump prices.
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. Without replacement funds, fuel tax revenues supporting critical investments in highway safety and infrastructure projects would evaporate, the groups said.
