Trump Says He’s Considering Suspending Federal Gas Tax as States Move to Lower Fuel Costs
President Trump said Tuesday that his administration is considering suspending the federal gasoline tax as part of a broader effort to reduce fuel costs for American drivers, farmers and businesses.
“We’re thinking about that,” Trump said when asked whether he supports temporarily suspending the tax. The federal government currently imposes an 18.4-cent-per-gallon tax on gasoline and a 24.4-cent-per-gallon tax on diesel.
Unlike some of the fuel relief measures the administration has already implemented, suspending the federal gasoline tax would require congressional action. The tax rate is established by federal law, meaning Trump cannot eliminate it nationwide through executive action alone.
The president’s comments come as several states have taken their own steps to reduce fuel costs. Georgia, Indiana, Ohio and Utah are among the states that have temporarily suspended or reduced gasoline taxes, while Kentucky has paused an automatic inflation-related increase.
Some states have also relaxed restrictions involving dyed diesel fuel, which is generally reserved for agricultural equipment and other off-road uses because it is exempt from federal highway taxes. The changes are intended to provide temporary relief as diesel prices remain elevated.
Trump signed an executive order Monday expanding access to dyed diesel and directing the Treasury Department to consider deferring certain federal excise-tax obligations through the end of 2026. The administration is also encouraging governors to take similar action at the state level.
The White House says the diesel measure could provide immediate savings for truckers, farmers and other heavy fuel users. A 250-gallon fill-up could save approximately $60 in federal taxes alone, with larger savings possible in states that provide additional relief.
Fuel prices have risen sharply during 2026 amid disruptions to global energy markets, including the war with Iran, attacks on refineries in Russia and tighter international supplies. Diesel prices reached record levels in September before beginning to decline.
Trump has repeatedly said his administration is pursuing multiple options to bring prices down. G7 countries and their partners have also agreed to release 100 million barrels of oil and refined petroleum products from emergency reserves over four months in an effort to increase supply.
The federal gasoline tax generated billions of dollars annually for the Highway Trust Fund, which helps finance roads, bridges and public transportation. Any congressional proposal to suspend the tax would therefore have to address the potential loss of transportation funding or provide money from another source.
Lawmakers from both parties have previously proposed temporary federal gas-tax holidays during periods of elevated fuel prices. No nationwide suspension of the federal gasoline tax has ever been enacted.
With the November midterm elections approaching, fuel prices have become an increasingly prominent economic issue. Trump’s latest comments signal that a temporary federal gas-tax suspension remains among the options under consideration as the administration looks for additional ways to reduce costs at the pump.