--- title: Lawmakers Scramble to Suspend Gas Taxes as Prices Near $4 a Gallon description: With average gas prices now within cents of $4 per gallon, state and federal legislators are scrambling to suspend gas taxes. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 597 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2026-03-24T16:23:00.000Z' modified: '2026-03-24T16:23:00.000Z' section: Economy and Politics tags: - News word_count: 935 canonical: https://money.com/gas-tax-suspended-iran-war/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Hand with gavel hitting gas station price sign](https://img.money.com/2026/03/News-Lawmakers-Gas-Prices.jpg) National average [gas prices](https://money.com/how-to-save-money-on-gas/) are now within cents of the pivotal $4-per-gallon threshold, which many elected officials would prefer to avoid in a midterm election year. So what will they do about it? As of Tuesday, it appeared likely that the national average would cross the $4 mark "in the next 24 hours," Patrick de Haan, GasBuddy's head of petroleum analysis, wrote in a post on X. The national average stood at $3.98 on Tuesday, according to GasBuddy, and AAA also put it at $3.98. Based on AAA's figures, that's an increase of more than $1 over the past month. With drivers suddenly paying roughly 35% more for gas just weeks into the Iran war, some federal and state representatives are pushing legislation to suspend gas taxes. All states charge gas taxes, which range from 9 cents to nearly 71 cents — counting fees — and are typically paid by drivers on every gallon of gas. The federal gas tax is 18.4 cents per gallon. ## States consider gas tax holidays amid Iran war Georgia Gov. Brian Kemp, a Republican, [signed](https://www.ajc.com/politics/2026/03/brian-kemp-says-he-will-suspend-georgias-gas-tax-amid-surging-prices/) a measure Friday suspending the state gas tax for 60 days after lawmakers sent it to his desk with bipartisan support. The move is estimated to save drivers about 33 to 34 cents per gallon. So far, Georgia is the only state to enact a gas tax holiday during this price spike. Other proposals have encountered resistance. In Maryland, Republican legislative leaders have backed a 30-day gas tax holiday; however, Gov. Wes Moore, a potential 2028 Democratic presidential candidate, isn't on board. In a statement to [FOX Baltimore](https://foxbaltimore.com/news/local/growing-gas-prices-maryland-republicans-gas-tax-holiday), a spokesperson said it would "blow a $100 million hole" in the transportation budget, adding that "if Maryland Republicans are serious about lowering costs, they should pick up the phone and call Donald Trump and tell him to end this missionless war." Key Connecticut officials including Gov. Ned Lamont, a Democrat, have endorsed a gas tax holiday. But a [report](https://ctmirror.org/2026/03/19/ct-gas-tax-holiday/) last week from the *Connecticut Mirror* raised questions about the seriousness of the effort, given that there's no concrete plan available and few signs of progress in recent days. Gas prices can be a political liability for elected officials on both sides of the aisle. Republican strategists are "privately worrying that high gas prices will undercut their economic message for the midterms," according to the [*New York Times*](https://www.nytimes.com/2026/03/21/us/politics/gas-prices-republicans-affordability.html). Meanwhile, California's highest-in-the-nation fuel costs are seen as one of Democratic Gov. Gavin Newsom's vulnerabilities ahead of a potential 2028 run. A bill to suspend California's gas tax, introduced earlier this month, quickly [failed](https://www.thecentersquare.com/california/article_419fd12a-f129-492e-a447-ec5a75768625.html) in a state senate committee last week. California has the highest state gas taxes and fees at 70.9 cents per gallon, according to the [Energy Information Administration](https://www.eia.gov/todayinenergy/detail.php?id=67165). The average cost for a gallon of gas is $5.82 in the Golden State, according to AAA. Republican Gov. Ron DeSantis, R-Fla., [recently poured cold water](https://www.youtube.com/live/kOlQA048mEc?si=6x-hQTcViZt4ix9s&t=1777) on the idea of suspending Florida's 25-cent per gallon state and local gas taxes, stating at a press event that the government's "ability to influence the fuel prices are really marginal at best." He added: "My answer is just get the cost down internationally." Rather than advancing gas tax relief, the Trump administration has taken several other steps aimed at lowering the cost of crude oil, which accounts for over 50% of what U.S. drivers pay for gas. The Trump administration is releasing 172 million barrels of oil from its strategic reserves over a 120-day period in a [coordinated release](https://www.energy.gov/articles/united-states-release-172-million-barrels-oil-strategic-petroleum-reserve) with dozens of other nations. The White House also eased some sanctions on [Russian oil](https://thehill.com/policy/energy-environment/5790550-gas-prices-strait-of-hormuz-jones-act-iran-war/) and decided to temporarily waive the Jones Act, a law typically requiring that ships transporting cargo between U.S. ports be American-built and -flagged vessels. Experts [told The Hill](https://thehill.com/policy/energy-environment/5790550-gas-prices-strait-of-hormuz-jones-act-iran-war/) these actions will save customers some money "at the margin," though the only way to really bring down the cost of gas is to reopen the strait. ## Will Congress suspend the federal gas tax? Over in Congress, Sens. Mark Kelly, D-Ariz., and Sen. Richard Blumenthal, D-Conn., have [cosponsored a bill](https://www.congress.gov/bill/119th-congress/senate-bill/4032/text) that would suspend the federal gas tax through Oct. 1. The "Gas Prices Relief Act of 2026" was referred to a finance committee. A [House version](https://www.congress.gov/bill/119th-congress/house-bill/7919/all-actions) introduced by Rep. Chris Pappas, D-N.H., on March 12 was referred to the Ways and Means committee. "As Granite Staters continue to grapple with high costs on groceries, housing and health care thanks to this administration, the last thing they need is to pay even higher prices at the gas pump as a result of Donald Trump’s war in Iran," Pappas said in a release. Given Democrats' minorities in both chambers of Congress, the bills appear unlikely to gain traction. They have no bipartisan support to date. GOP leaders like House Speaker Mike Johnson, R-La., say they are confident that the Strait of Hormuz will reopen soon, and gas prices will come down shortly. About 20% of global oil supply is currently [disrupted](https://money.com/iran-war-gas-prices-5-dollar-gallon/) at the strait, leading to the ongoing supply crunch and price spikes. On Monday, the Brent crude oil benchmark was down 10% to about $100 per barrel following President Donald Trump's latest claims that the U.S. has been in talks with Iran about ending the war, which Iran denied. GasBuddy's De Haan said on X that the sharp drop in oil prices "could lead the national average to start declining later in the week if there's confidence in \[the situation\] improving." ![](https://s3.consumersadvocate.org/prd/image/image/29780/medium_e439fd1c-3ee2-41b2-bccf-5dfe3c4d8add.png) Protect your vehicle with affordable Car Insurance. [View Rates](https://money.com/pr/b046d48341c1?ap_referrer=%2Fgas-tax-suspended-iran-war%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/gas-tax-suspended-iran-war/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Gas Prices", "item": "https://money.com/gas-prices/" }, { "@type": "ListItem", "position": 4, "name": "Lawmakers Scramble to Suspend Gas Taxes as Prices Near $4 a Gallon" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/gas-tax-suspended-iran-war/#webpage", "url": "https://money.com/gas-tax-suspended-iran-war/", "name": "Lawmakers Scramble to Suspend Gas Taxes as Prices Near $4 a Gallon", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-03-24T16:23:00.000Z", "mainEntity": { "@id": "https://money.com/gas-tax-suspended-iran-war/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/gas-tax-suspended-iran-war/#breadcrumb" }, "dateModified": "2026-03-24T16:23:00.000Z" }, { "@type": "NewsArticle", "headline": "Lawmakers Scramble to Suspend Gas Taxes as Prices Near $4 a Gallon", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/03/News-Lawmakers-Gas-Prices.jpg", "width": 2880, "height": 1920, "caption": "News-Lawmakers-Gas-Prices" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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