Trump Seeks Temporary Pause on Federal Gas Tax

The White House is pushing a proposal to temporarily suspend the federal gasoline tax as U.S. pump prices climb above $4.50 per gallon. The reduction would equate to roughly 18 cents at the pump and would require approval from Congress before motorists see lower prices.

Advisers revived the plan this week after it had been treated as a backup option through late April. Administration officials say the measure is one of a limited set of options being weighed to provide visible relief to households facing higher fuel costs.

Under the proposal, the federal gasoline tax would be paused for a specified period; the precise duration and the timing of any change at retail pumps would depend on how quickly Congress acts. Lawmakers would also need to decide how to offset the lost federal revenue that funds highway and transit programs.

Fuel costs have risen sharply since the start of the U.S.-Iran fighting, driven in part by disruptions from the closure of the Strait of Hormuz. The national average retail gasoline price has increased by more than 50% since the conflict began.

A Brown University tracker estimates U.S. drivers have spent an additional $39.6 billion on fuel since the fighting began. An Ipsos consumer tracker found 56% of Americans reported higher gas spending over the past three months, up from 24% in April 2025. At the same time, the U.S. Strategic Petroleum Reserve has been drawn down to help meet supply pressures.

An administration official described a consensus in the White House that with prices up about 50% since the start of the war, the president needed a visible action to address consumer pain.

In a Monday phone interview, Trump said, ‘I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: we cannot let Iran have a nuclear weapon. That’s all.’

Officials say the window for rapid relief is narrowing as the Memorial Day holiday approaches and ceasefire talks have not produced a breakthrough. If Congress does not act, there would be no immediate change at the pump.

Any congressional decision to suspend the federal gasoline tax would reduce federal motor-fuel receipts and leave lawmakers to set the length of the pause. Such a decision would also affect the timing and size of any change in retail gasoline prices ahead of the summer travel season.