President Trump and Republican congressional leaders are pushing to suspend the federal gas tax as fuel prices spike amid the widening conflict with Iran, a move that could save American drivers roughly 18 cents per gallon at the pump.
The proposal comes as benchmark crude oil prices surged past $95 per barrel this week, driven by fears of supply disruptions following Iranian attacks on commercial shipping in the Strait of Hormuz. Regular gasoline now averages $4.12 nationally, up 67 cents from a month ago.
House Speaker Mike Johnson told reporters Sunday the tax suspension would run through September, cutting the 18.4-cent-per-gallon federal levy on gasoline and 24.4-cent diesel tax. “American families are getting crushed at the pump because of Iranian aggression,” Johnson said. “We can provide immediate relief while our military handles the threat.”
The White House confirmed Trump supports the measure and wants it on his desk before Memorial Day weekend, traditionally the start of summer driving season. Administration officials estimate the suspension would cost roughly $10 billion in lost Highway Trust Fund revenue over four months.
Senate Majority Leader John Thune said Republicans have the votes to pass the suspension, though Democrats remain divided. Progressive senators argue the tax cut would primarily benefit oil companies, who may not pass savings to consumers, while moderate Democrats in competitive states face pressure to support relief measures.
Treasury Secretary Scott Bessent defended the plan Monday, saying the administration would backfill highway funds from general revenue. “We’re not going to let roads crumble while Americans are paying $80 to fill their tanks,” Bessent said.
The federal gas tax, unchanged since 1993, funds interstate highway maintenance and public transit. Transportation advocates warn even a temporary suspension sets a dangerous precedent, as the Highway Trust Fund already faces a projected $134 billion shortfall over the next decade.
Energy analysts say the tax holiday’s impact depends on how quickly retailers adjust prices. Previous state-level suspensions in Georgia and Maryland showed roughly 70% of tax savings reached consumers, with the remainder absorbed by supply chain margins.
For a typical family driving 12,000 miles annually in a vehicle averaging 25 miles per gallon, the suspension would save approximately $88 over four months. Diesel-dependent trucking companies would see larger benefits, potentially easing pressure on shipping costs that feed into grocery and retail prices.
Congressional leadership aims for a floor vote by Friday. If Iran tensions ease and oil prices retreat, Republicans may face criticism for adding to deficits during an election year to solve a problem that resolved itself.
Key Points
- Federal gas tax suspension would save drivers roughly 18 cents per gallon through September, costing $10 billion in highway fund revenue
- National gas prices hit $4.12 per gallon, up 67 cents in a month, as Iranian attacks on shipping drive crude past $95 per barrel
- Republicans claim enough votes to pass relief before Memorial Day, while Democrats split between supporting drivers and protecting infrastructure funding
https://www.cnbc.com/2026/05/11/trump-congress-gop-gas-tax-iran-war.html – May 11, 2026
