Energy Secretary Signals Federal Gas Tax Suspension May Be on the Table
Energy Secretary Chris Wright told NBC News on Sunday that the Trump administration is open to pausing the federal gas tax, Benzinga reported Monday. The federal gas tax currently sits at around 18 cents per gallon. Wright said the administration is receptive to any idea that lowers costs for American consumers. He stressed that every policy option carries trade-offs.
Pump Prices Reach Post-War Highs
National average gasoline prices have climbed to $4.52 per gallon, according to AAA. That figure represents a jump of more than 50% since the conflict with Iran began. The spike has transformed fuel affordability into a sharp political liability ahead of midterm elections. Wright declined to forecast whether prices could push higher, saying he was deliberately avoiding price predictions.
Project Freedom Restart Also on the Table
In a separate Sunday appearance on CBS News, Wright raised the prospect of restarting what the administration calls “Project Freedom.” He said the operation could resume within days if ongoing negotiations with Iran collapse. The initiative involves using military pressure to keep the Strait of Hormuz open for commercial shipping. Disruption to that chokepoint has been a primary driver of the recent oil price surge.
Background: A Tax Holiday Idea With a Long History
The push to pause the federal gas tax is not new to Washington. President Donald Trump acknowledged in March that a gas tax suspension remained an option the administration was holding “in its pocket.” He also encouraged states to consider pausing their own fuel levies. The idea gained bipartisan momentum in Congress earlier this year when Democratic senators Richard Blumenthal and Mark Kelly introduced the Gas Prices Relief Act. That bill would halt the federal tax through October 1. A companion measure in the House was introduced by Representative Chris Pappas of New Hampshire.
What Comes Next
No formal suspension proposal has yet been sent to Congress. The administration appears to be keeping pressure on Tehran while managing domestic blowback from elevated energy costs. A gas tax pause would offer consumers immediate but limited relief. The 18-cent-per-gallon levy funds federal highway and infrastructure spending, meaning any suspension would require offsetting revenue decisions elsewhere.
Read Next: Oil Markets Brace for Strait of Hormuz Disruption Risk
