President Donald Trump (R-FL) said on Monday he would like to temporarily suspend the federal gasoline tax to help lower pump prices.
The proposal comes as the U.S. economy faces a sharp increase in energy costs. Because the federal gas tax provides significant revenue for infrastructure and highway maintenance, a suspension would require a strategic shift in how the government funds national transport projects during a crisis.
Speaking from the Oval Office in Washington, D.C., Trump said the price spikes are linked directly to the conflict in Iran. He said the tax pause would serve as a temporary relief measure for consumers until the geopolitical situation stabilizes.
"Yeah, I'm gonna reduce until the -- let me tell you, as soon as this is over with Iran, as soon as it's over, you're going to see gasoline and oil drop like a rock," Trump said.
Energy Secretary Wright said the administration is open to the idea of suspending the tax amid the current price surge. The move would be intended to offset the costs passed down to drivers as global oil markets react to the war.
While the president expressed confidence that prices will eventually fall, the immediate proposal focuses on providing financial breathing room for American households. The administration has not yet detailed the specific duration of the proposed suspension, or how the resulting budget gap will be filled.
“President Donald Trump said on Monday he would like to temporarily suspend the federal gasoline tax”
A suspension of the federal gas tax is a direct fiscal intervention to combat inflation caused by external shocks. By removing this tax, the administration aims to lower the cost per gallon at the pump without needing to influence global oil production. However, this creates a trade-off between immediate consumer relief and the long-term funding of the Highway Trust Fund, potentially delaying infrastructure projects.
