President Trump Proposes Temporary Suspension of Federal Gasoline Tax Amid Rising Fuel Prices
President Trump has proposed a temporary suspension of the federal gasoline tax to alleviate rising fuel prices, a measure requiring congressional approval.
President Donald Trump has proposed a temporary suspension of the federal gasoline tax in response to escalating fuel prices amid the ongoing conflict with Iran. In an interview with CBS News on Monday, Trump stated, "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."
The federal gasoline tax, set at 18.4 cents per gallon, contributes over $23 billion annually to the Highway Trust Fund, which finances highway and transit programs. Suspending this tax would require congressional approval.
Energy Secretary Chris Wright indicated the administration's openness to the proposal, stating, "We're open to all ideas" to lower costs for consumers and businesses.
Gasoline prices have surged to an average of $4.52 per gallon, up from $3 before the conflict began. While some lawmakers support the tax suspension, others express concern over its potential impact on infrastructure funding. Industry groups warn that suspending the tax could increase the federal deficit and may not yield full consumer savings.