Trump Admin Considers Suspending Federal Gas Tax as Prices Surge to 4-Year High

Energy Secretary Chris Wright announced Sunday that the Trump administration is considering a suspension of the federal gasoline tax as U.S. pump prices hit their highest levels in four years.

The average price for regular gasoline in the U.S. reached $4.52 per gallon on Sunday, according to AAA. This marks a significant increase from just under $3 per gallon when Russia’s invasion of Ukraine began.

Administration Signals Openness to Gas Tax Suspension

Wright, speaking on NBC’s “Meet the Press”, stated the administration is “open to all ideas” to reduce costs for consumers and businesses.

“Everything has tradeoffs,” Wright said. “But we’re open to all ideas.”

His remarks represent a slight shift from the White House’s previous stance, which had indicated the idea was “not currently under consideration” just days earlier.

Legislative Action Required, but Proposals Gain Traction

Democratic lawmakers and candidates, including Sen. Mark Kelly (D-Ariz.), have introduced legislation to suspend the federal gas tax of 18.3 cents per gallon.

However, suspending the tax would require an act of Congress. Historically, federal tax holiday proposals have emerged during periods of high fuel prices, but none have been enacted.

Gas Tax Funds Critical Infrastructure—But Relief Would Be Limited

The gasoline tax, along with a 24.3-cent diesel tax, funds the Highway Trust Fund, which supports road, bridge, and transit projects nationwide.

Even if suspended, the relief would be minimal. A Bipartisan Policy Center estimate suggests a full suspension would reduce prices by only 10 to 16 cents per gallon—far short of the over $1.50 increase seen since the war began.

White House Explores Alternative Measures

The administration has taken other steps to ease price pressures, including:

• Tapping the Strategic Petroleum Reserve to increase supply.
• Waiving the Jones Act to facilitate fuel shipments at U.S. ports.

Yet, these measures have done little to offset the war’s impact on global oil supplies, as U.S. gasoline prices remain tied to international markets.

Political Implications Ahead of Midterms

With midterm elections approaching, Trump officials are testing arguments on energy policy. Wright warned of a “long-term threat to peace in the region” if Iran’s nuclear ambitions go unchecked, acknowledging the “short-term dislocation” caused by the war.

“We need to make that tradeoff, or we have a long-term threat to peace in the region, long-term threat to energy supplies, long-term threat to Americans,” Wright said on CBS’ “Face the Nation.”