How much would suspending the federal gas tax save drivers?
Analysts say the move would save drivers only cents per gallon and could cost the Highway Trust Fund billions.
- On May 11, President Donald Trump proposed suspending the federal gasoline tax to ease pump prices currently averaging above $4.50 a gallon.
- Gasoline prices have neared record highs since Trump started a war with Iran in February, prompting Iran to block the Strait of Hormuz, the transit route for about one-fifth of the world's crude oil.
- A suspension would freeze the 18.4-cent gasoline tax and 24.4-cent diesel tax, saving average drivers about $1.84 per 10-gallon fill-up, though analysts caution this offers limited budget relief.
- Suspending the tax would deprive the Highway Trust Fund of $3.5 billion monthly, totaling about $21 billion over six months, accelerating depletion the Congressional Research Service projects for 2028.
- While then-President Joe Biden proposed similar suspensions in 2022, the policy has never been implemented, and critics warn that lower prices could increase demand, potentially raising costs again.
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TucsonSentinel.comSuspending federal gas tax wouldn’t save drivers as much as they might hope
This article originally appeared in The Conversation. With gasoline prices still high – averaging over US$4.50 a gallon in mid-May 2026 – President Donald Trump said he wanted Congress to suspend the federal gas tax, which is 18.4 cents a gallon for gasoline and 24.3 cents a gallon for diesel. A bill has been introduced in the Senate, and one is expected to follow in the House, according to Politico, but their fate is unclear. States also charge…
Trump Proposes Gas Tax Holiday the Impact May Be Minimal
President Trump has proposed a federal gas tax holiday to alleviate rising fuel costs, which would temporarily suspend the federal gas tax. The measure requires Congressional approval, making its implementation uncertain.
President Donald Trump said this Monday that he would like to temporarily suspend the federal gasoline tax, in a context of rising fuel prices caused by the war in Iran. The proposed measure would mean a reduction of approximately 18 cents per gallon in regular gasoline and about 24 cents per gallon in diesel, according to the figures of the federal tax itself in force. The proposal comes at a time of strong tension in the energy markets, where …
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