Trump Plans to Suspend the Federal Gas Tax Until Prices Go Back Down

"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. But, yes, we're going to be doing something on that, Trump told Cordes."

"Now, pausing the federal gas tax would take an act of Congress, Cordes said, continuing: There are Democratic lawmakers who have introduced legislation to either pause or reduce the federal gas tax. It does come with repercussions, because this is money that goes to fund highway repairs, highway construction, other transit projects. And, so, you're looking at a significant hit to the funding for those projects for as long as that gas tax were to be paused."

"Cordes said dropping the gas tax could happen relatively quickly since the president would press Republicans, plus you have Democrats in the House and the Senate who have already introduced legislation to do it. It just depends on whether lawmakers are willing to put it at the top of the agenda, and whether the House and the Senate agree on whether they want to pause the gas tax entirely for a specific period of time, whether they simply want to reduce it, how long this would last before they phase it back in, Cordes said."

President Donald Trump said he plans to suspend the 18-cents-per-gallon federal gas tax for a period of time until gas prices go back down, then phase the tax back in. Gas prices have been rising since the U.S. began military action in Iran and Iran closed the Strait of Hormuz. Pausing the federal gas tax would require an act of Congress, and Democratic lawmakers have introduced legislation to pause or reduce it. The change would reduce funding for highway repairs, highway construction, and other transit projects, creating repercussions. The proposal could move quickly if lawmakers prioritize it and agree on whether to pause or reduce the tax and for how long.

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