President Trump has called for Congress to suspend the federal gasoline tax as pump prices across the country hit their highest levels in four years, driven by the ongoing U.S. war with Iran and the disruption of oil shipments through the Strait of Hormuz. The move, which would require an act of Congress, is widely seen as a political response to mounting voter frustration over energy costs that is threatening Republican prospects in the November midterms. Lawmakers on both sides of the aisle have signaled openness to the proposal, though economists warn the relief would be limited.
Story Highlights
- Trump called for a suspension of the federal gas tax of 18.4 cents per gallon “for a period of time.”
- Average U.S. gas prices have risen more than 50 percent since the Iran war began, reaching $4.52 per gallon.n
- Congressional approval is required; Trump cannot suspend the tax unilaterally
What Happened
President Trump said Monday he wants the federal gas tax temporarily suspended as the Iran war extends into its eleventh week and keeps oil prices elevated. He told CBS News that he wants the tax suspended “for a period of time” and would want it reintroduced “when gas goes down.” Asked by reporters in the Oval Office later in the day how long the suspension would last, the president responded, “Till it’s appropriate.”
Trump said in the CBS interview, “I think it’s a great idea. Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.” The announcement came a day after his energy secretary had already laid the groundwork for the proposal publicly.
Energy Secretary Chris Wright said Sunday the Trump administration is “open” to suspending the federal gasoline tax amid high pump prices, slightly softening the White House’s earlier stance. Wright, appearing on NBC’s “Meet the Press,” said the administration is “open to all ideas” to lower costs for consumers and businesses.
Trump cannot declare a gas tax holiday alone, since Congress has sole authority over taxation. Republicans control both the House and Senate, and lawmakers from both parties have pushed for a suspension, saying it would provide much-needed relief for families and businesses that rely on their cars and trucks for daily life.
The federal gas tax currently stands at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel. Regular gasoline costs just under $3 per gallon on average before the United States bombed Iran. The average cost per gallon has since soared by more than 50 percent to $4.52, according to AAA.
Why It Matters
The push for a gas tax holiday is as much a political calculation as an economic policy. Eight in ten Americans say gas prices are straining their budgets, including overwhelming majorities of Democrats, independents, and Republicans alike, according to the latest NPR/PBS News/Marist poll. In addition, 63 percent of Americans say they blame Trump “a great deal” or “a good amount” for the higher gas prices. That includes more than 6 in 10 independents and nearly one-third of Republicans.
Those are deeply alarming numbers for an administration heading into a midterm election with an already-deteriorating approval rating. The fact that even a significant share of Republican-leaning voters is blaming the president directly for gas prices undercuts one of the administration’s core arguments: that the Iran war serves American security interests. When national security policy visibly raises the cost of filling a gas tank, the political calculus shifts quickly.
The gas tax suspension proposal also reflects a broader tension in the administration’s messaging. Trump has simultaneously argued that the Iran war is a strategic success and that its costs on consumers are so severe that they require congressional intervention. These two narratives are difficult to hold at the same time, and Democratic opponents have already begun exploiting the contradiction in campaign messaging ahead of November.
A suspension would also have downstream consequences for the Highway Trust Fund, which relies on gas tax revenue to finance road and bridge construction and maintenance. A prolonged holiday would reduce funding for infrastructure projects in every state, creating political friction with members of Congress who represent districts with aging transportation networks.
Economic and Global Context
Even a full suspension of the federal gas tax would shave only 10 to 16 cents per gallon, according to a Bipartisan Policy Center estimate. That means Washington has few tools to quickly bring meaningful relief from a war-driven price spike of more than $1.50 per gallon. The arithmetic is unforgiving: the tax is small relative to the underlying price shock caused by the closure of the Strait of Hormuz.
Blockades imposed during the Iran war have stalled the passage of oil tankers through the Strait of Hormuz. Around one-fifth of the world’s crude oil normally travels through that strait, and its disruption has created a global supply shock. The ripple effects extend well beyond the United States, affecting energy prices in Europe and Asia and straining the budgets of governments and households worldwide.
Analysts report that even if the Strait of Hormuz reopened immediately, gas prices would likely remain elevated — possibly even above pre-war levels — through the midterm elections. Energy markets do not recover instantly from supply disruptions of this scale; inventories must be rebuilt, shipping routes re-established, and refinery throughput ramped back up. The timeline for normalization is measured in months, not days.
The proposal also raises constitutional and fiscal questions. Suspending the tax would add to the federal deficit at a time when the Congressional Budget Office projects the One Big Beautiful Bill Act has already increased the deficit by $3.4 trillion over ten years. Fiscal hawks within the Republican caucus, particularly in the Senate, have historically resisted measures that widen the deficit without offsetting cuts — creating a potential obstacle to swift passage.
Implications
If Congress moves quickly, a gas tax suspension could pass within weeks, given Republican majorities in both chambers and bipartisan interest. However, the legislative calendar is already crowded with appropriations battles, the $70 billion ICE and CBP reconciliation package, and midterm campaign pressures. Scheduling floor time for a gas tax bill will require deliberate prioritization by congressional leadership.
The political symbolism of the move, whatever its economic impact, may matter more than the cents-per-gallon relief it delivers. Trump is signaling to voters that he is responsive to their economic pain, even if the underlying cause — the war — remains unresolved. It is a familiar playbook: offer visible, near-term relief to contain political damage from a structural problem.
For the oil industry and energy sector, the proposal changes little. The underlying dynamic — disrupted Hormuz traffic, elevated global crude benchmarks, constrained supply — is unaffected by a domestic tax adjustment. Energy companies have seen record margins during this period, and pressure is growing in Congress for hearings on whether price-gouging is contributing to consumer pain at the pump.
For ordinary Americans, especially rural households and working-class families who drive long distances for employment, any reduction in gas costs matters at the margins. Even 18 cents per gallon represents real money over the course of a month of commuting. But the broader message — that the war has a direct and sustained cost on everyday life — is one that voters are already absorbing, and that message is shaping the political landscape heading into November.
