"On Monday, Trump told he was considering a suspension of the federal gas tax, a move that has never been done before (though former President Joe Biden did call on Congress to pass a gas tax holiday in July 2022 because of rising gas prices, which averaged $4.25 at the time). The move would eliminate the 18.4 cents per gallon collected on gas and 24.4 cents per gallon on diesel. The federal gas tax is specifically earmarked for the Highway Trust Fund (HTF), which the government uses to pay for infrastructure fixes."
"While the suspension may sound like meaningful relief for consumers, experts say the move won't lower prices by a significant amount, and that's because the lost revenue would need to be offset elsewhere in the budget. Carl Davis, research director of the Institute on Taxation and Economic Policy, said it's most likely to be added to the country's already-hemorrhaging budget deficit. "In practice what happens is it gets tacked on the debt," he told Fortune."
"Like the last time this was floated with Biden, the president can't act on this move alone, as Congress holds the power of the purse. However, shortly after news broke Monday about the president's desire to suspend the gas tax, Sen. Josh Hawley (R-MO) said in a post on X he was introducing legislation to do so. Gas today averages $4.52 across the country, according to AAA, and many argue that it's a tax on consumers that's already too big to bear, especially for lower-income drivers and " super-commuters.""
Gas prices are at their highest levels since 2022, averaging above $4.50 nationwide and reaching about $6.16 in California. With the U.S. and Iran failing to reach an agreement and the Strait of Hormuz remaining closed, President Donald Trump is considering suspending the federal gas tax. The proposal would remove 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, revenue that is earmarked for the Highway Trust Fund used for infrastructure spending. Experts say the lost revenue would need replacement in the budget, most likely by increasing the deficit. Congress would need to approve the change, though Sen. Josh Hawley has indicated he will introduce legislation. Gas prices are also described as a burden on consumers, especially lower-income drivers.
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