By Skylar Woodhouse and Jennifer A. Dlouhy
Bloomberg News
(TNS)
President Donald Trump said that he is weighing a potential suspension of the federal gas tax, as his administration looks for ways to ease high energy costs ahead of November’s midterm elections.
“Well, we’re thinking about that,” Trump said Tuesday when asked by a reporter if the tax would be suspended. He did not offer any additional details about how seriously the idea is being considered or any steps to further the proposal in Congress.
Trump has voiced support for a temporary suspension of the federal gasoline tax before, but pausing the 18.4 cents-per-gallon levy would require lawmakers to act, an unlikely prospect before the midterms this year with both the House and Senate having left Washington already to campaign. A handful of governors have already moved to suspend or ease state taxes on gasoline.
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The president has faced pressure from voters to do more to help ease high costs of living, including for gas, groceries, healthcare and housing, with the upcoming elections set to hinge on affordability concerns. Trump’s Republican Party is at risk of losing control of Congress with polls showing voters unhappy with the president’s economic agenda and handling of the Iran war.
On Monday, Trump signed an order to ease limits on a tax-exempt variety of diesel in a bid to lower costs for that fuel, which has skyrocketed in recent months.
It’s unclear if a temporary cut to the gas tax would significantly lower prices at the pump. A pause on the gas tax would likely lower prices between 10 and 16 cents a gallon, according to research from the Bipartisan Policy Center in April. Gas prices nationally averaged $4.37 per gallon as of Monday, according to auto group AAA.
A gas tax suspension would also result in billions of dollars in lost revenue each month for the government.
The federal gas tax, which hasn’t been raised since the early 1990s, funds highways, bridges and mass transit. Any interruption in revenue would either lead to less spending on construction and maintenance or force Congress to find alternate sources of federal funding to fill the gap.
— With assistance from Will Kubzansky.
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©2026 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency LLC.
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