Trump Backs Federal Gas Tax Suspension as Iran Conflict Drives Pump Prices Higher

AOL.com reported Monday that President Donald Trump has endorsed suspending the federal gas tax as rising fuel prices, driven partly by the conflict with Iran, push costs at the pump to levels not seen in years.

Trump confirmed the push during a CBS News interview, saying the administration wants to lift the gas tax temporarily and phase it back in once prices ease. Congressional action would be required to make that happen.

Hawley Moves to Introduce Relief Legislation

Missouri Republican Senator Josh Hawley announced via social media on Monday that he intends to introduce a bill pausing the federal gas tax. The pledge came the same day Trump voiced public support for the measure, signaling coordinated momentum behind the effort.

Energy Secretary Chris Wright also offered backing, telling NBC’s “Meet the Press” on Sunday that the administration supports every available tool to lower costs for American consumers. Wright declined to predict whether national average prices could breach $5 per gallon this year.

The national average stood at $4.52 per gallon on Monday, according to AAA data, approaching the historic high of $4.53.

What the Federal Gas Tax Is and Where It Goes

The federal gas tax currently sits at 18.4 cents per gallon for regular gasoline and 24.4 cents for diesel, with an additional 0.1-cent fee tied to underground storage tank maintenance. Together these levies generate roughly $30 billion per year for the federal government, or between $500 million and $600 million each week.

Those revenues flow primarily into the Highway Trust Fund, which underwrites federal highway construction and upkeep contracts with state and local governments. The fund has faced recurring shortfalls since 2001, and the Congressional Budget Office warned last year that it may struggle to meet its obligations to states by fiscal year 2028. Analysts have linked the gap to improved fuel efficiency and fewer total miles driven, both of which erode tax receipts over time.

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Political Calculus Behind the Tax Holiday Push

Suspending the gas tax would offer immediate and visible relief to drivers ahead of the summer travel season. The political upside for the White House is clear, though critics have long argued that gas tax holidays tend to benefit fuel retailers as much as consumers.

Any bill would also need to address the Highway Trust Fund shortfall it would deepen, potentially requiring supplemental general-fund transfers to keep infrastructure projects on track.

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