Trump Pushes Federal Gas Tax Holiday Amid Pump Price Surge

Key Details President Trump expressed support for temporarily suspending the federal 18.4 cents-per-gallon gas tax to combat rising fuel costs. Sen. Josh Hawley announced plans to introduce legislation backing the proposal following Trump's comments to CBS News. The average national gas price has climbed to $4.52 per gallon as of mid-May, driven by geopolitical tensions and Middle East conflicts disrupting oil supplies through the Strait of Hormuz. Why It Matters Historical data suggests gas tax cuts rarely benefit drivers fully. A study by the American Road and Transportation Builders Association found only 18% of state gas tax changes between 2013-2021 were passed through to consumers at the pump. The suspension could also severely damage the Highway Trust Fund, which relies on gas and diesel taxes for 80% of its funding for road construction and repairs. What's Next Democrats including Sen. Mark Kelly and Rep. Brendan Boyle support temporary tax relief but propose backfilling highway funds through redirected oil company subsidies. Congress has shown limited enthusiasm for previous gas tax suspension efforts, including Biden's failed 2022 proposal during the Ukraine crisis.