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Trump seeks to pause federal gas tax

financeMay 11, 202625492

President Trump urged Congress to suspend the 18.4¢ per gallon federal gasoline tax as U.S. fuel costs surge amid the Iran conflict. The national average pump price has climbed by more than $1 per gallon since late February to a four-year high. The pause would require Congressional approval and would cut federal gas tax revenue by 18.4¢ per gallon, but enforcing that oil companies pass the full savings to drivers would be difficult. This proposal could deliver modest short term relief at the pump while shrinking transportation funding, making it a politically consequential but limited fix.

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