President Donald Trump said Monday morning that he wants to suspend the federal gas tax for a period of time, a move that would need Congress to approve before it could take effect. He made the case in a phone interview with CBS News as gasoline prices stayed elevated across the country.
"I think it's a great idea," Trump said, adding, "Yup, 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." The federal levy is 18.4 cents per gallon on gas and 24.4 cents a gallon on diesel, and pausing it would cost the government about a half billion dollars a week.
The push comes as fuel costs have risen sharply since the Iran war began on Feb. 28. Gas prices have climbed more than 50% since then, and AAA said they hit a high of over $4.52 on Sunday. Analysts say prices are likely to stay high if Iran continues blocking access to the Strait of Hormuz, a chokepoint for global oil shipments.
The tax also helps fund the Highway Trust Fund, which pays for road construction, repairs and some transit projects, so any suspension would shift the burden elsewhere unless Congress replaces the money. Several Democratic lawmakers had already introduced bills to pause or lower the tax, and after Trump's comments Republican Sen. Josh Hawley said Monday he would introduce his own legislation.
Trump also rejected the idea of a bailout for U.S. air carriers facing higher jet fuel costs, which have more than doubled since the war began. He said the airlines "hasn't really been presented" as a problem and added, "The airlines are doing not badly." Spirit Airlines shut down earlier this month as it faced surging pressure from rising jet fuel prices, underscoring how widely the fuel spike is hitting beyond drivers.
For now, the answer to whether the federal gas tax will disappear is simple: not unless Congress acts, and any relief would have to be paid for or made up later.
