Trump Proposes Temporary Suspension of Federal Gas Tax Amid Rising Prices During Iran War
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120d ago

Trump Proposes Temporary Suspension of Federal Gas Tax Amid Rising Prices During Iran War

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President Donald Trump said on Monday that he would like to temporarily suspend the federal gas tax as fuel prices rise during the war with Iran. In an interview with CBS News, Trump stated, "I would love to suspend the federal gas tax, at least for a period of time," and described the idea as "a great idea," according to reports from Axios and The Hill.

Suspending the federal gasoline tax, which is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, would require an act of Congress, as noted by NPR and The New York Times. The Times also reported that dropping the federal tax would not make up for the steep increase in pump prices since the war began.

Oil prices have surged amid the conflict with Iran, driving up costs for consumers. Bloomberg reported that Trump voiced support for a gasoline tax holiday to counter rising prices at the pump as the war drags on. ABC News and The Washington Times similarly reported Trump's comments on Monday.

CNBC reported that voter sentiment toward Trump's economic management has been declining ahead of the 2026 midterm elections, and that high gas prices are contributing to consumer dissatisfaction. The Hill confirmed that Trump aims to pause the federal gas tax while prices remain elevated during the war.

The proposal has drawn attention from congressional Republicans, with some expressing support, according to CNBC. However, any legislative action would need to navigate the current political landscape.

The war with Iran has been a central factor in the rise of global oil prices, and the administration has faced pressure to address the economic impact on American households. Trump's suggestion of a gas tax suspension is one of several measures under discussion.

No timeline for potential congressional action was provided. The White House has not released a formal proposal, and it remains unclear whether the idea will advance in Congress.

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