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President Trump looks to suspend the federal gas tax

1d ago · May 12, 2026 · 2 min read

Why It Matters

President Donald Trump has announced his intention to suspend the federal gas tax, a proposal that would reduce costs for American motorists but faces a significant hurdle: it cannot be enacted by executive action alone. Any suspension would require approval from Congress, adding uncertainty to the timeline and final outcome.

What Happened

Trump publicly stated his intention to suspend the federal gas tax as energy costs continue to burden consumers across the country. The announcement comes amid what officials have described as a global energy pricing strain, with Americans increasingly feeling the effects at the pump.

A Trump administration official had previously opened the door to a gas tax suspension, signaling that the White House had been weighing the option before the president made his position public. The federal gas tax currently stands at 18.4 cents per gallon for regular gasoline and 24.4 cents per gallon for diesel.

By the Numbers

18.4 cents — the federal excise tax per gallon of regular gasoline, unchanged since 1993.
24.4 cents — the federal diesel tax per gallon.
2 — the number of legislative chambers in Congress that would need to act before any suspension could take effect.
$6 billion+ — approximate annual revenue the federal gas tax generates for the Highway Trust Fund, which finances road and bridge infrastructure across the country.

Zoom Out

The idea of suspending the federal gas tax is not new. A similar proposal circulated in 2022 during a prior period of elevated fuel prices, but it stalled in Congress amid concerns about the impact on infrastructure funding. Critics of a suspension have historically argued that the savings passed to consumers are modest while the loss to highway maintenance budgets is significant.

The timing also intersects with broader energy market movements. Oil prices have recently extended gains following signals from the White House that a U.S.-Iran nuclear deal remains unlikely, a development that tends to push crude prices — and by extension pump prices — higher.

What’s Next

The proposal now moves to Capitol Hill, where Republican and Democratic lawmakers would need to craft and pass legislation authorizing the suspension. Congressional leaders have not yet signaled a timeline for taking up the measure. Given the Highway Trust Fund’s dependence on gas tax revenue, any bill will likely face debate over how to offset the funding gap before it can advance.

Last updated: May 12, 2026 at 11:32 AM GMT+0000 · Sources available
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