Trump and GOP Push Gas Tax Holiday Amid Iran War
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- Trump said in the Oval Office that he would “reduce” the federal gas tax and later told CBS he wants to pause it “for a period of time.”
- Hawley announced on X that he would immediately introduce a bill to suspend the federal gas tax.
- Luna said she would introduce a House bill to suspend the federal gas tax in light of Trump’s remarks.
- Gas tax remains at 18.4 cents per gallon, unchanged since 1993, and funds federal highway construction, maintenance, and some public transit.
- Gas price averages $4.52 per gallon nationally (AAA), and eliminating the tax would lower it to roughly $4.34 per gallon.
Why it matters: American drivers could see pump prices drop from $4.52 to $4.34 per gallon, while the Treasury would lose roughly $8 billion in annual highway‑funding revenue, pressuring infrastructure budgets ahead of the November midterms.
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