Trump’s Gas Tax Holiday: What It Would Mean

Trump floated suspending the federal gas tax as fuel costs rise. Republicans and Democrats are advancing competing proposals.
A potential gas tax holiday is back in the spotlight just as Americans feel fresh pressure at the pump: President Trump said Monday he would like to temporarily suspend the national gas tax, though Congress would have to approve any change.
Trump’s remarks come amid a surge in gasoline prices nationwide. elevating a policy that has long been politically tempting but structurally difficult to enact.. The federal gas tax has been in place for nearly a century and is a key source of revenue for the Highway Trust Fund. which supports major transportation programs.
Any attempt to suspend the tax would also carry a steep price tag.. Estimates in the debate suggest that pausing the gas tax would cost the Highway Trust Fund billions over a period of months. potentially creating new fiscal pressure—and a fresh political risk for Republicans as the midterm elections approach.
In response to Trump’s comment, multiple Republican lawmakers moved quickly to introduce their own measures in both chambers, setting up a crowded field of competing approaches. It remains unclear, however, which proposals Trump supports, if any.
Rep.. Jeff Van Drew, R-N.J., introduced legislation that would suspend the federal gas tax for 18 months.. His plan would eliminate current federal fuel taxes. including specific per-gallon rates for gasoline. diesel and kerosene. and aviation gasoline. while also addressing the Leaking Underground Storage Tank fee. which would not be suspended under his bill.. After the 18-month pause, the gas taxes would phase back in gradually rather than returning all at once.
Meanwhile, Sen.. Josh Hawley. R-Missouri. said on X that he is introducing a measure to suspend both the gas tax and the underground storage tank fee.. Hawley’s proposal calls for a 90-day suspension. with an option for the president to extend that authority for another 90 days if he decides that economic conditions warrant it.
Rep. Anna Paulina Luna also signaled action on the House side, saying she would introduce a bill to suspend the federal gas tax in light of Trump’s recent remarks.
Although the initiative is being driven by Republicans in the immediate term. Democrats have also been pushing for a suspension during recent weeks. describing the measure as potential relief for drivers.. A group of Democrats—Sens.. Mark Kelly and Richard Blumenthal and Rep.. Chris Pappas—introduced legislation on March 9 to temporarily suspend the federal gas tax through Oct.. 1, 2026.
Other Democratic efforts take a more trigger-based approach.. Rep.. Brendan Boyle proposed a bill that would suspend the federal gas tax when the national average price of gasoline exceeds $4 per gallon.. Boyle said he would offset lost revenue by redirecting about $30 billion in existing federal subsidies now going to oil and gas companies into the Highway Trust Fund. with his bill introduced on April 14. 2026.
Whether a gas tax holiday can clear Congress looks unlikely without broad agreement across party lines. Lifting the federal gas tax would require congressional approval and, given the history of disputes over transportation funding, would probably need bipartisan backing.
Senate Majority Leader John Thune offered a cautious response when asked about the proposal.. He said he had not been a fan of suspending the tax in the past. while also indicating he would hear out colleagues who support it.. He later framed normalization of gas prices as tied to geopolitical conditions. pointing to the challenge of opening the Strait of Hormuz.
Thune suggested that if President Trump makes the case for a suspension. lawmakers would have an opportunity to evaluate it. even as he referenced the broader factors that affect prices.. Senate Minority Leader Chuck Schumer. for his part. did not dismiss the idea outright but argued that gas prices would not be meaningfully addressed without ending the conflict in Iran.
House and Senate leaders were not immediately available for comment on Trump’s proposal. Spokespersons for Speaker Mike Johnson and House Minority Leader Hakeem Jeffries did not respond right away to requests about the desire to suspend the federal gas tax.
The political debate is closely tied to the larger drivers of fuel prices.. Oil and gas costs have risen worldwide during months of war-related disruption. as the Strait of Hormuz remains effectively shut. limiting the movement of oil supplies.. According to AAA data cited as of Monday, the U.S.. national average for a gallon of unleaded gasoline was $4.52, up more than $1.50 since the war started on Feb.. 28.
Lawmakers are now weighing whether the public frustration that comes with higher prices could translate into political consequences this fall. Trump’s support for a suspension also places pressure on Congress to take action if it wants to match the president’s framing of quick relief.
At the same time. implementing a gas tax holiday can be seen as an implicit acknowledgment that global and domestic price pressures are already being shaped by Operation Epic Fury.. That framing is politically sensitive for congressional Republicans and the administration. particularly as they look to avoid conceding that the broader conflict environment is driving costs in a way that could hurt them at the polls.
As the policy debate moves from Washington to the campaign trail. it is already surfacing in local races. including the Texas Senate contest.. Democratic nominee James Talarico criticized Sen.. John Cornyn. who faces a difficult primary runoff. arguing that lowering prices at the pump should be treated as a bipartisan priority.. Talarico urged Cornyn to drop opposition to suspending the gas tax.
The power for making changes rests with Congress. including control over the national gas tax. which traces back to the National Revenue Act of 1932 during the Great Depression.. Even with that authority. there is no single Republican plan that has clearly emerged as the rallying option. and the legislative timeline could be challenging.
One reason is that the window for congressional action may not align neatly with the speed of events and the political calendar.. The clock. sources indicate. could pass quickly as the president’s focus on foreign developments continues. leaving uncertainty about how quickly leadership would prioritize a gas tax response—or whether it will see urgency in addressing consumer pain before November.
The idea itself is not new.. President Joe Biden proposed a national gas tax holiday in 2022 amid price spikes connected to Russia’s conflict with Ukraine.. That effort faced resistance inside his own party. with Democrats then raising concerns about whether the policy benefitted gas companies more than consumers.
Even if political support can be cobbled together, the financial mechanics remain a major hurdle.. Critics and budget-watchers point out that the Highway Trust Fund relies heavily on federal gas tax revenue. and the Congressional Budget Office has predicted the fund could run out of money by 2028 at current spending levels.
Other budget estimates add another layer of complexity.. The Bipartisan Policy Center has estimated that suspending the gas tax for five months would cost the fund $17 billion.. And while lawmakers have advanced similar proposals during periods of high gas prices in the past. Congress has never successfully paused the national gas tax.
Historically. the last major increase to the gas tax came in 1993. when former President Bill Clinton signed a reconciliation bill into law.. The current debate suggests that any attempt to suspend the tax again would require navigating both the political appetite for relief and the funding realities that keep transportation programs running.
Trump gas tax holiday Highway Trust Fund fuel prices Operation Epic Fury congressional approval midterm elections