President Donald Trump told reporters Monday that he would support suspending the federal gas tax “until it’s appropriate.”
Suspending the tax, which is at about 18 cents per gallon, would require congressional approval.
Asked by a reporter whether he would suspend the tax, Trump said, “Yeah.”
“I’m going to 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,” he said.
Asked how long he would suspend the tax for, Trump said, “Until it’s appropriate.”
“It’s a small percentage, but it’s still money,” he added.
Earlier Monday, Trump told CBS News in a phone interview that he thought suspending the tax was “a great idea.”
“We’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” he said.
Energy Secretary Chris Wright said in an interview Sunday on NBC News’ “Meet the Press” that Trump was “open to all ideas” to cut the cost of gas, including possibly pausing the federal gas tax.
Democrats introduced legislation in March to suspend the tax until October, but their proposal has stalled. Sen. Josh Hawley, R-Mo., introduced a similar bill Monday.
Hawley’s measure would suspend the 18.4 cents-per-gallon federal tax on gasoline and the 24.4 cents-per-gallon federal tax on diesel fuel for 90 days after enactment. It would also give the president the authority to extend the suspensions for 90 more days if he determined it was needed.
“American workers and families deserve immediate relief and this legislation will do just that,” Hawley said in a statement.
Rep. Anna Paulina Luna, R-Fla., said Monday on X that she would introduce a bill “to suspend the federal gas tax in light of Trump’s recent remarks.” It was not immediately clear whether or how their legislation would differ from what Democrats proposed in March.
“American families need this relief on gas prices,” Luna wrote. “My office will be working directly with President Trump to ensure we deliver this win for the American people.”
Rep. Chris Pappas, D-N.H., and Sen. Mark Kelly, D-Ariz., led the March bill. Pappas responded to Trump’s support for suspending the gas tax by saying on X, “This should have happened months ago.”
“Let’s pass it this week,” he said in the post.
The federal gas tax helps fund the Highway Trust Fund, which supports highway and mass transit programs, according to the Tax Policy Center at the Brookings Institution. Suspending the tax for five months could ultimately cost the government billions in revenue used for the fund this fiscal year, according to the Bipartisan Policy Center, a Washington think tank.
But even if the federal gas tax were suspended, gas prices would not be likely to decrease by the full 18 cents per gallon. The Bipartisan Policy Center estimated that gas would most likely fall by 10 to 16 cents per gallon for consumers, while gasoline suppliers would get the rest of the benefit.
Gas prices have risen more than 50% since the start of the war in Iran. On Monday, the national gas price average was $4.52 per gallon.
