Story perspectives

Trump, Hawley Propose 90-Day Gas Tax Cut, Prices Jump 50%

5/12/2026

Summary

Trump Proposes Tax Pause

President Donald Trump proposed suspending the federal gasoline tax—18 cents per gallon for gasoline and 24 cents for diesel—to ease fuel-price pain from the Iran-U.S. war.
Senate Republican Josh Hawley introduced the Gas Tax Suspension Act to halt the federal fuel tax for 90 days, with a possible extension.
AAA reported the national average gasoline price rose to $4.50 per gallon, a 50 % increase since February.

Summary

Trump Blamed

Ipsos finds three-quarters blame President Donald Trump for the gas-price surge.
NPR/Marist finds 63 % blame him, with eight in ten saying fuel costs strain budgets.
Polls say the surge is pulling Trump’s approval to low levels before midterms.
A tax pause would cut Highway Trust Fund revenue by $17 billion (46 % of its budget), prompting American Road & Transportation Builders Association to warn that loss could raise deficit and jeopardize projects.

History

Historical Context

The 1973 Arab oil embargo, triggered by the Yom Kippur War, caused U.S. gasoline prices to quadruple, sparking nationwide unrest. President Richard Nixon’s administration reported oil prices soaring from $3 to $12 per barrel, a 300% increase, while Congress debated tax relief. Today's proposals by Senator Josh Hawley and President Donald Trump to suspend the 18-cent gasoline tax echo 1973 calls for fiscal relief amid soaring fuel costs. Repeating a tax holiday could deplete the Highway Trust Fund by billions, as the 1970s experience showed reduced infrastructure spending worsened long-term road quality.

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Trump Proposes Tax Pause

President Donald Trump proposed suspending the federal gasoline tax—18 cents per gallon for gasoline and 24 cents for diesel—to ease fuel-price pain from the Iran-U.S. war.
Senate Republican Josh Hawley introduced the Gas Tax Suspension Act to halt the federal fuel tax for 90 days, with a possible extension.
AAA reported the national average gasoline price rose to $4.50 per gallon, a 50 % increase since February.

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