Full Breakdown
Trump Calls for Temporary Suspension of Federal Gas Tax Amid Iran War
5/12/2026, 9:56:07 PM
Trump Proposes Federal Gas Tax Suspension Amid Iran War
President Donald Trump told CBS on May 11, 2026 that he would ask Congress to temporarily suspend the federal gasoline excise tax—18.4 cents per gallon for gasoline and 24.4 cents for diesel—“for a period of time” until pump prices fall. The plan cannot be enacted without legislative approval.
Background & Context
After the U.S. and Israel struck Iran on Feb. 28, 2026, Iran shut the Strait of Hormuz, a key route for about 20 % of global oil. The blockade lifted the U.S. gasoline average to $4.52 per gallon—over 50 % above the pre-war $2.98 level—and pushed diesel to $5.64, adding pressure to inflation and the 2026 midterm race.
Data & Statistics
The federal gas tax funds >$23 billion annually for the Highway Trust Fund. A pause could cost $0.5 billion weekly (CBS), $3.5 billion monthly (CBC) or $17 billion over five months (Bipartisan Policy Center). Analysts expect a 4 % price drop or 10-16 cents per gallon, saving $2-$3 per fill-up.
Official Statements & Responses
Trump called the tax holiday “a great idea” and said it would be reinstated later. Sen. Josh Hawley (MO) and Rep. Anna Paulina Luna (FL) introduced bills to suspend the tax. Sens. Richard Blumenthal (CT) and Mark Kelly (AZ) said the pause is needed to curb “skyrocketing gas prices due to the war.” Energy Secretary Chris Wright said any measure that can lower consumer costs is supported.
Criticism & Opposition
Critics say the pause would cut Highway Trust Fund revenue, risking project delays. Rep. Janelle Bynum called it “a band-aid on a bullet wound,” and ODOT warned of “significant revenue loss.” Analysts note the cut may benefit oil firms more than drivers because retailers often retain the savings.
Conflicting Reports & Gaps
Cost estimates vary: CBS cites a $0.5 billion weekly loss, CBC a $3.5 billion monthly loss, and the Bipartisan Policy Center a $17 billion five-month loss. Projected consumer savings range from a 4 % price drop to a 10-16 cent per-gallon reduction, reflecting uncertainty about pass-through.
Verbatim Quotes
- “done by people that have no clue as to the danger they're in.” — President Donald Trump, CBS interview
- “I would call it the weakest right now,” — President Donald Trump, CBS interview
- “American families need this relief on gas prices,” — Rep. Anna Paulina Luna, R-FL
- “The president is trying to put a band-aid on a bullet wound,” — Rep. Janelle Bynum, R-OR
What's Next
Congress is reviewing two bills: the “Gas Prices Relief Act” to suspend the tax through Oct. 1, and the “Gas Tax Suspension Act” for an initial 90-day pause. Lawmakers must act before the summer travel season and the November midterms, where fuel costs dominate voter concerns.
