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Momentum grows for pausing gasoline tax after Trump’s backing
President Donald Trump threw his support behind pausing the federal gas tax on Monday, saying he would suspend the tax “until it’s appropriate.”
It’s a small percentage, but it’s still money,” he said in the Oval Office.
Earlier Monday, the president told CBS News that he thought it was a “great idea” to temporarily pause the federal tax.
“Yup, 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,” the president told the outlet.
Shortly after Trump threw his support behind a pause in the federal tax, Hawley and Luna announced they would introduce legislation to approve it, as such a suspension would require an act of Congress.
“American families need this relief on gas prices,” Luna said in a post on X. “My office will be working directly with President Trump to ensure we deliver this win for the American people.”
It’s unclear for how long a pause on the federal gas tax would be, or if GOP leadership will bring such measures to the floor. The Washington Examiner has contacted House Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD) for comment.
The Committee for a Responsible Federal Budget projected in March that suspending the federal gas tax for one month would cost $3.5 billion, while a six-month pause would cost about $21 billion if there are no offsets. Money generated from the federal gasoline tax funds improvements to road and transit projects through the Highway Trust Fund.
“The federal gasoline tax was introduced to build the interstate highway system,” Sen. Mike Lee (R-UT) said on X. “That system is now built. … We should now repeal the federal gasoline tax and let each state maintain its portion of the interstate highway system—with its own revenue—as was the plan from the beginning.”
Adam Michel, director of tax policy studies at the Cato Institute, told the Washington Examiner that the “federal gas tax is a relic of the past that should be repealed” entirely.
But Michael also called a temporary gas tax holiday a “gimmick, not a reform.”
Michel continued, “If the administration wants to bring down gas prices, it should end the unconstitutional, unauthorized, and unnecessary war in Iran, which is the reason prices are up.”
TRUMP CALLS TO PAUSE FEDERAL GAS TAX IN BID TO EASE PRICES AT THE PUMP
Democrats have been pushing for a temporary pause to the federal gas tax. Sens. Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) and Rep. Chris Pappas (D-NH) introduced legislation in March to suspend the gas tax until October to provide voters relief.