Trump Calls on Congress to Suspend Federal Gas Tax as Fuel Prices Climb

President Donald Trump said on May 11, 2026, that he wants Congress to suspend the federal gasoline tax to help address surging fuel prices tied to the conflict with Iran. The proposal comes as motorists across the country confront rising costs at the pump, and it reflects growing political pressure on the White House and lawmakers to respond to disruptions in energy markets that have pushed retail gasoline prices higher. However, any change would require legislation because the president does not have the authority to suspend the tax unilaterally, making the proposal contingent on congressional action and opening the door to legislative debate.

The Details

The federal gasoline tax stands at 18.4 cents per gallon, while diesel fuel is taxed at 24.4 cents per gallon. Those rates have remained in place for years without change, and together the taxes generate more than $23 billion each year for federal highway and public transit programs, according to the U.S. Energy Information Administration as cited by WRAL. Trump said any suspension should remain in place “until it’s appropriate,” and he defended the idea by saying, “It’s a small percentage, but it’s still money.”

On Capitol Hill, Republican lawmakers have divided over the measure. Sen. Josh Hawley of Missouri and Rep. Anna Paulina Luna said they would introduce legislation to suspend the federal gas tax. Senate Majority Leader John Thune took a more skeptical public stance, stating he has “not been a fan of the idea.” Still, Thune indicated he would allow the discussion to proceed rather than block it outright. “You know, I’ve got some colleagues out there who think it’s a good idea,” he said. “So, we’ll hear them out.”

The urgency behind the proposal is tied directly to prices at the pump. AAA reported that the national average price for regular gasoline was about $4.52 per gallon on May 11, according to AAA, following a recent jump linked to the conflict with Iran. That figure represents a sharp increase in recent weeks and has added political weight to calls for tax relief as households absorb higher fuel costs.

Context

State governments have already moved in a similar direction ahead of the federal push from the White House. Indiana and Georgia have fully suspended their state fuel taxes for drivers, while Kentucky and Utah have reduced theirs amid the broader spike in fuel costs, according to the Associated Press. WRAL reported that drivers in North Carolina pay roughly 59.4 cents per gallon in combined federal and state fuel taxes, a burden that illustrates how state-level charges can pile on top of the federal levy and, in some cases, exceed it.

But the federal proposal faces opposition from groups that depend on the revenue. The transportation construction industry has warned that suspending the federal gas tax would leave a significant hole in the Highway Trust Fund, which distributes money for road and transit construction work, unless the lost revenue is backfilled with general revenues, the Associated Press reported, citing the American Road & Transportation Builders Association. That fund helps finance federal highway construction, bridge maintenance, and public transit work across the country.

Consumer advocates and academic analysts have also questioned how much relief drivers would actually see at the pump once a federal tax holiday takes effect. Industry observers say retailers may not pass the full tax cut on to consumers, and any resulting savings may appear modest when measured against the scale of recent price volatility. WRAL cites a study from the Wharton School estimating that only 60 percent to 80 percent of a federal gas tax reduction would ultimately reach consumers in the form of lower prices.

What's Next

Hawley and Luna have said they plan to introduce legislation to suspend the federal gas tax, setting up the next phase of legislative debate in Congress. Thune indicated he is willing to hear out colleagues who support the measure despite his personal reservations. Because a federal gas tax suspension cannot be enacted by the president alone, its fate will depend on whether congressional leadership allows the measure to advance, whether enough lawmakers vote to approve it, and whether the president ultimately signs the resulting bill. The discussion is expected to intensify as long as fuel prices remain elevated.