President Donald Trump announced Monday his intention to reduce the 18-cent federal gas tax for an unspecified period, citing soaring U.S. fuel prices resulting from the Iran war. Waiving the tax requires Congressional legislation, a body currently controlled by Trump's fellow Republicans.
Trump's Statement on Gas Tax Reduction
"Yeah, I'm going to reduce," Trump told reporters when asked about suspending the tax. When pressed on the duration, he stated, "till it's appropriate." Separately, U.S. Senator Josh Hawley, a Missouri Republican, said on X that he is introducing legislation Monday to suspend the gas tax.
In March, some Democrats including Senator Mark Kelly of Arizona first proposed suspending the tax, which generates approximately $2.5 billion per month in road funding, until October. Since 2008, more than $275 billion—including $118 billion from the 2021 infrastructure law—has been shifted from the general fund to pay for road repairs.
Broader Economic and Political Context
Trump told CBS earlier on Monday that a bailout plan for airlines, which are struggling with surging jet fuel costs, had not "really been presented" and that "the airlines are doing not badly." Trump also hailed the ongoing U.S. standoff with Iran as an example of his "military genius" planning and claimed the U.S. has no shortages of key ammunition, describing the shaky ceasefire with Tehran as "on life support."
Energy Secretary Chris Wright on Sunday told NBC News' "Meet the Press" program that the Trump administration was open to suspending the federal gas tax.
State-Level Actions and Consumer Impact
U.S. states also tax gasoline, with Indiana, Kentucky, and Georgia moving to make cuts to provide consumers some relief at the pump. Gas prices have risen since the war in Iran began on February 28, with one gallon in the U.S. averaging $4.52 as of Monday, the highest since 2022, when the average peaked at $5.01 a gallon, according to AAA motor club.
