Trump Pushes Gas Tax Holiday As Americans Feel Pain At The Pump
President Trump said Monday that he supports temporarily suspending the federal gas tax as Americans face rising fuel prices tied to the ongoing crisis in the Strait of Hormuz.
“I think it’s a great idea,” Trump said during a brief interview with CBS News. “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 federal gas tax has remained at 18.4 cents per gallon since the 1990s and generates tens of billions of dollars annually for the Highway Trust Fund, which finances road construction and infrastructure projects across the country.
Gas prices have surged in recent weeks amid instability in the Middle East and disruptions to shipping traffic through the Strait of Hormuz. According to AAA data, the national average price for regular gasoline climbed to $4.52 per gallon Monday, roughly 40 cents higher than one month ago.
When asked how long the suspension would last, Trump told reporters the tax holiday would remain in place “till it’s appropriate.”
The proposal is expected to require congressional approval, and several lawmakers are already moving to support the idea.
Josh Hawley announced plans to introduce legislation implementing a temporary gas tax suspension when Congress reconvenes.
Anna Paulina Luna also said she intends to push similar legislation in the House.
Interestingly, several Democrats floated comparable proposals earlier this year as fuel prices began climbing again, including Mark Kelly and Richard Blumenthal.
Still, some Republicans have expressed reservations about the idea because of the impact it could have on transportation funding.
John Thune acknowledged Monday that suspending the tax could create “a big hole in the Highway Trust Fund.”
“I think right now, the best thing that can happen for gas prices is for the Strait to get opened up again,” Thune told reporters.
The Trump administration has already taken several steps aimed at stabilizing energy markets during the crisis.
Earlier this year, the US coordinated with allies to release millions of barrels of oil from strategic reserves in an effort to calm global prices.
The administration also launched “Project Freedom,” a military operation designed to escort commercial vessels through the Strait of Hormuz after Iran-backed disruptions threatened global shipping traffic.
Trump argued Monday that Iran’s attempts to choke off the strait are becoming less effective.
“That’s the only weapon they have,” Trump said of Tehran’s efforts to pressure global energy markets. “It’s not much of a weapon anymore, but that’s the only weapon they have.”
“We would have had it open,” he added, referring to expanded military escort operations, “except that I did favors for certain countries that asked me not to do it.”