Trump Wants to Suspend the Federal Gas Tax to Lower Fuel Prices. Can He Do That?
President Donald Trump said Monday that the U.S. government will suspend the federal gas tax of 18.4 cents per gallon after average prices eclipsed $4.50 last week.
"We're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in," Trump told CBS News.
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Such a move would be unprecedented. The Constitution gives Congress the power to tax, not the president, and Congress has never suspended the gas tax, which dates back to 1932.
Trump did not say whether he intends to ask Congress to fast-track a bill or bypass the process by signing an executive order aimed at gas tax relief. But experts say the former is the only viable path.
Before Trump's Monday announcement, legislation to suspend the federal gas tax, which is charged to drivers on every gallon of gas purchased, had stalled. Although Trump's remarks will almost certainly give the push new momentum, it could still be an uphill battle.
Knowing that high gas prices are a political liability for the Republican Party in a midterm election year, Democrats may be reluctant to throw Trump a bone. They will likely continue to argue that the best solution to high gas prices is ending the war in Iran, given that the primary factor driving up prices is the continued blockage of the Strait of Hormuz.
On the other side of the aisle, fiscally conservative Republicans may reject a gas tax suspension because it would increase the national deficit, which was $1.8 trillion last fiscal year.
The Gas Prices Relief Act of 2026, which would suspend the gas tax through Oct. 1, has just two Senate sponsors: Sens. Mark Kelly, D-Ari., and Richard Blumenthal, D-Conn. The House version has one sponsor, Rep. Chris Pappas, D-N.H.
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On Monday, Sen. Josh Hawley, R-Mo. announced on X that he intends to introduce a separate piece of legislation to suspend the gas tax. He did not say exactly how his bill will differ, but it's unlikely to have an Oct. 1 date on it considering that Trump has repeatedly told Americans the war will be over much sooner than that.
Just over 10 weeks into the Iran war, average gas prices have surged 52% from $2.98 on Feb. 28 to $4.52 today, according to AAA. Filling up a typical 14-gallon tank now costs about $63.28 — of which federal gas taxes comprise about $2.58.
At a White House event Monday, the president predicted that Americans will see "gasoline and oil drop like a rock" when the conflict ends. So far, however, the war has stretched on longer than the president said it would, while gas prices have risen more than expected. Consumers paying higher prices for their commutes are losing patience.
Drivers also pay more than 30 cents, on average, in state gas taxes, according to the U.S. Energy Information Administration. Trump has previously called for states to offer gas-tax relief, but so far, just three have: Georgia, Indiana and Utah.
Before Georgia suspended its gas tax for 60 days on March 20, gas taxes ranged from 9 cents in Alaska to nearly 71 cents per gallon, counting fees, in California. With just over a week left on Georgia's suspension, it's unclear whether lawmakers will extend it or allow it to expire.