President Donald Trump said he aims to temporarily suspend the federal gasoline tax for a period of time [1].
The proposal comes as the administration seeks to mitigate the financial burden on American consumers facing surging fuel prices. A suspension of the tax would lower the cost per gallon at the pump, providing immediate liquidity to households across the U.S.
Trump detailed the plan during a phone interview with CBS News chief White House correspondent Nancy Cordes [2]. The president said he is open to the move to provide relief to Americans [3]. This potential policy shift follows reports that fuel prices have hit a four-year high [4].
"I am open to suspending the federal gasoline tax for a period of time," Trump said [5].
The federal gas tax typically provides a steady stream of revenue for highway and bridge construction. A temporary suspension would pause those collections, potentially impacting infrastructure funding while lowering costs for drivers. The president said he did not specify the exact duration of the proposed suspension during the interview [2].
Economic pressures have intensified as fuel costs rise, prompting the administration to consider direct interventions. By removing the federal tax component, the government would effectively lower the retail price of gasoline without requiring direct subsidies to oil companies [3].
“"I am open to suspending the federal gasoline tax for a period of time."”
A suspension of the federal gas tax represents a direct attempt to curb inflation's impact on consumers. While it provides immediate relief at the pump, such a move typically creates a funding gap for the Highway Trust Fund, which relies on these taxes for national infrastructure maintenance. The effectiveness of the measure depends on whether oil companies pass the tax savings fully to consumers or absorb them into profit margins.
