Trump proposes gas tax holiday as fuel prices soar
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- Trump proposed pausing the 18.4‑cent‑per‑gallon federal gas tax as fuel prices rose to an average $4.50 per gallon, a 30 % increase from a year ago, amid the Iran war’s impact on oil markets.
- Josh Hawley (R‑Mo.) and Anna Paulina Luna (R‑Fla.) announced they would introduce legislation to suspend the tax, signaling early GOP rank‑and‑file support.
- John Thune (R‑S.D.) warned that the tax funds the Highway Trust Fund and that a 10‑month suspension would cut its revenue by about $20 billion, nearly half its annual intake, threatening its solvency.
- Mike Johnson (R‑La.) said he was “intrigued” but stopped short of endorsing the holiday, urging a review of unintended consequences before any vote.
- The Committee for a Responsible Federal Budget estimated the $20 billion loss would accelerate the Highway Trust Fund’s insolvency, and some proposals would shift Treasury general‑fund money to offset the shortfall.
- AAA reported the national average gas price at $4.50 per gallon, a 30 % jump from a year earlier and a 30‑cent rise from the previous month.
- CBS News interview showed Trump calling the tax pause “a great idea,” marking a shift from a prior White House statement that a gas‑tax suspension was not under consideration.
Why it matters: If the holiday passes, drivers could see lower pump prices in the short term, but the Highway Trust Fund would lose $20 billion, threatening road maintenance and construction; GOP leaders must balance voter concerns over inflation with the fund’s fiscal shortfall.
