Trump Calls for Federal Gas Tax Pause as Iran War Spikes Prices
federal gas tax pause 2026
President Donald Trump announced on Monday, May 11, 2026, that he is seeking a temporary suspension of the federal gasoline tax to provide immediate relief to American consumers facing skyrocketing fuel costs. Speaking from the Oval Office, the president stated that the move is necessary to help families shoulder the economic burden of surging energy prices caused by the ongoing Iran war.
The federal tax currently stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel. Trump indicated that the suspension should remain in place “until it’s appropriate,” predicting that oil prices will “drop like a rock” once the conflict in the Middle East is resolved and the Strait of Hormuz is fully reopened to international shipping.
The proposal comes as the national average for a gallon of regular gasoline reached approximately $4.52 this week, a sharp increase from pre-war levels of under $3.00. While the president has moved to release millions of barrels from the U.S. Strategic Petroleum Reserve, prices have remained elevated due to persistent disruptions in global crude supplies.
Any suspension of the federal excise tax requires the approval of the U.S. Congress, where the idea has gained traction among members of both parties. Republican Senator Josh Hawley of Missouri and Representative Anna Paulina Luna of Florida announced they would introduce legislation to formalize the holiday, joining existing efforts from Democratic Senators Mark Kelly and Richard Blumenthal who have advocated for similar relief since March.
Despite the political appeal of the plan, fiscal analysts and infrastructure groups have raised concerns about the potential impact on long-term funding. The American Road & Transportation Builders Association warned that a five-month suspension could drain approximately $17 billion from the Highway Trust Fund, which pays for critical road and public transit improvements.
Critics also argue that there is no guarantee that oil companies and retailers will pass the full 18-cent savings directly to consumers at the pump. Nevertheless, with inflation reaching its highest level in two years and the Department of the Treasury facing pressure to mitigate the “war-risk premium” on energy, the administration is pushing for a swift legislative response to address what it calls a “temporary but severe” energy crisis.
