Trump Pushes Federal Gas Tax Suspension Amid Iran Conflict Price Surge
AOL.com reported Monday that President Donald Trump has confirmed his support for a temporary federal gas tax suspension, with Republican legislators in both chambers quickly moving to draft companion bills.
Speaking to CBS News, Trump called the proposal “a great idea” and said the 18.4-cent-per-gallon levy would be removed for a set period before phasing back in once prices fall. He declined to name a specific price threshold or end date for any suspension.
Prices at the Pump Hit a Painful High
National average gasoline prices reached $4.52 per gallon on Monday, according to the American Automobile Association. That figure represents a jump of more than $1.38 compared with a year earlier. Prices have climbed over 50% since a U.S.-Iran military conflict began on February 28, putting significant strain on household budgets across the country.
Iran’s ongoing blockade of the Strait of Hormuz is the primary driver. The waterway handles roughly 20% of global oil and natural gas shipments. Trump told reporters at a separate White House event that prices would fall sharply once the conflict concludes. He described the current ceasefire as being on “massive life support.”
Also Read: What the Strait of Hormuz Blockade Means for Global Energy Markets
A Legislative Push With Key Details Missing
Republican Senator Josh Hawley of Missouri and Representative Anna Paulina Luna of Florida announced separate plans to introduce suspending legislation. Luna said her office would coordinate directly with the White House. Neither bill had been formally filed at the time of the report. No co-sponsors, committee pathways, or bill text had been released by either lawmaker.
The administration estimates suspension would cost roughly $500 million per week in lost federal revenue.
What a Suspension Would Actually Cost
That lost revenue flows directly into the Highway Trust Fund, which bankrolls road construction, bridge repair, and public transit infrastructure nationwide. The nonpartisan Committee for a Responsible Federal Budget warned earlier this year that any suspension would accelerate the fund’s insolvency.
Crucially, the 18.4-cent relief would not even offset half of the price increase consumers absorbed in April alone. Democratic lawmakers had already introduced their own suspension bill in March, proposing relief through October. Canada enacted a comparable measure in late April, suspending its roughly 28-cent federal gas levy at an estimated cost of about $1.74 billion.
Similar gas tax holidays have been floated during previous energy price spikes but have rarely advanced through Congress.
Read Next: Oil Markets Brace as Hormuz Tensions Show No Sign of Easing
