President Donald Trump announced Monday that he will move to suspend the 18-cent-per-gallon [1] federal gasoline tax until fuel prices stabilize.
The move aims to provide immediate financial relief to American drivers as pump prices reach their highest levels since 2022 [3]. High oil prices and the ongoing war with Iran have driven fuel costs upward, increasing the cost of living for households across the U.S.
Speaking at a press briefing in Washington, D.C., Trump said, "I will reduce the federal gasoline tax until it's appropriate" [1]. He said he intends to pause the levy, stating, "Yes, I would suspend the federal gas tax" [3].
Despite the announcement, the president acknowledged that he does not possess the unilateral authority to eliminate the tax. "I can't do it on my own; Congress has to approve it," Trump said [2]. Legal experts and reports from the Boston Globe and Reuters said that suspending the tax requires a formal act of Congress [2].
The federal gasoline tax is a significant source of government funding. According to data from Arirang News, the tax generates approximately $2.5 billion per month [3]. A suspension would create a substantial gap in federal revenue used for infrastructure, and transportation projects.
The president's proposal comes as a response to sharp spikes in energy costs. By removing the 18-cent [1] federal surcharge, the administration hopes to lower the final price consumers pay at the pump, effectively shifting the burden of cost away from the driver during the geopolitical crisis.
“"I will reduce the federal gasoline tax until it's appropriate."”
This proposal represents a strategic attempt to curb inflation and consumer dissatisfaction by targeting a visible cost of daily life. However, because the federal gas tax is statutory, the plan's success depends entirely on legislative cooperation in Congress. If approved, the government would face a monthly revenue loss of $2.5 billion, potentially forcing a trade-off between lower fuel prices and funded highway or infrastructure maintenance.
