President Donald Trump said on Tuesday that his administration is weighing a suspension of the federal gasoline tax, joining a push for fuel relief ahead of the November midterm elections as high energy costs strain motorists and threaten Republican congressional majorities.
Speaking to reporters at the White House on Tuesday, President Trump acknowledged that relief measures are under consideration as voters express anger over fuel costs just a month before the midterm elections. We’re thinking about that,
Trump told a reporter when asked if the levy would be paused.
The proposed federal holiday targets an 18.4 cent per gallon tax on gasoline and a 24.4 cent per gallon excise tax on diesel, levies that bring in more than $23 billion annually for highway and public transit infrastructure.
South Dakota Republican Senator Mike Rounds also formally requested a 90-day suspension of these same federal fuel taxes in a letter sent to the president, while concurrently urging the administration to invoke the Defense Production Act to help domestic refineries expand their output.
Senator Rounds pointed out that American drivers, truckers, and farmers cannot halt their operations, noting that high pump prices stem from a global shortage of refining capacity alongside geopolitical conflicts and the Iran war.
To make up for lost revenue to the Highway Trust Fund during a suspension, Senator Rounds suggested that Congress could authorize a one-time transfer from the General Fund.
Congress Faces Legislative Hurdles Before November
Any federal gas tax suspension requires an act of Congress because the executive branch lacks unilateral authority to eliminate or pause the statutory levies. That legislative requirement presents an immediate hurdle: both the House and Senate have left Washington to campaign and are not scheduled to return until after the November elections.
The possibility of a federal fuel tax holiday comes just three weeks after House Republican leaders shelved a similar legislative push.
Republican Maryland Representative Andy Harris, chairman of the House Freedom Caucus, introduced a bill on September 15 to temporarily suspend federal fuel taxes.
House Speaker Mike Johnson decided against bringing the measure to a floor vote after it became clear that the Republican conference lacked consensus, with House Transportation and Infrastructure Committee Chairman Sam Graves opposing the effort.
Earlier in the year, Democratic Senator Mark Kelly of Arizona and Democratic Representative Chris Pappas of New Hampshire also introduced separate bills aimed at pausing the gasoline tax through October 1.
States and Executive Orders Target Diesel and Fuel Levies
Before raising the prospect of a federal tax suspension, the administration pursued other avenues to lower transportation expenses.
Trump signed an executive order during a campaign rally in Grand Island, Nebraska, allowing truckers to use tax-exempt red-dyed diesel on public highways through December 31.
The fuel, typically restricted to off-road agricultural and construction equipment, was freed up to help lower skyrocketing diesel costs.
Alongside federal maneuvers, several governors moved independently to reduce state fuel burdens.
Senator Rounds specifically encouraged state leaders to cut their own levies, noting that combined state and federal cuts could yield average savings of 52 cents on gasoline and 60 cents on diesel.
- Ohio: Republican Governor Mike DeWine signed legislation waiving his state’s 38.5-cent gas tax and 47-cent diesel tax through December 31.
- Georgia: Republican Governor Brian Kemp suspended his state’s 33.3-cent gas tax and 37.3-cent diesel tax through at least October 29.
- Indiana: Republican Governor Mike Braun suspended a 7% gasoline use tax and a 37-cent excise tax while leaving a 63-cent diesel tax in place alongside a red-dye expansion.
- Utah: Republican Governor Spencer Cox lowered state fuel levies by 6 cents through the end of the year.
- Kentucky: Democratic Governor Andy Beshear paused automatic inflation adjustments to fuel taxes.
Experts Debate Trust Fund Solvency and Consumer Impacts
Economists and policy centers remain divided over whether a temporary holiday would meaningfully lower consumer costs or simply deplete critical infrastructure funds.
Research from the Bipartisan Policy Center estimated that pausing the federal tax would lower pump prices between 10 and 16 cents a gallon, while a complete elimination of the federal duty would reduce consumer prices by approximately 4 percent.
Critics point to long-term fiscal consequences.
The Tax Policy Center warned that suspending the tax would increase consumption at a time of low supply, potentially driving up pre-tax prices and worsening climate change, while The Budget Lab calculated that a three-month break would save the average household roughly $37.
Trump’s approval rating held at 32 percent in a Reuters/Ipsos poll completed on Monday, matching the lowest mark of his career as voters register intense concern over the rising cost of living.
