President Trump and Republican lawmakers are pushing to suspend the federal gas tax, a move that would save drivers roughly 18 cents per gallon but could drain billions from the Highway Trust Fund that pays for road repairs and infrastructure projects across America.
The proposal comes as pump prices hover near multi-year highs, squeezing household budgets already strained by grocery costs and utility bills. For the average driver filling a 15-gallon tank, a gas tax suspension would mean savings of about $2.70 per fill-up — roughly $11 per month for someone filling up weekly.
But the federal gas tax generates approximately $26 billion annually for the Highway Trust Fund, which states rely on to maintain interstates, bridges, and local roads. A suspension lasting even three months would create an $6.5 billion hole in infrastructure funding at a time when the American Society of Civil Engineers rates U.S. roads at C-minus and estimates a $786 billion backlog in needed repairs.
Republican supporters argue the immediate relief matters more than long-term funding concerns, pointing to record-high federal revenues in other areas that could temporarily backfill the shortfall. “American families are getting crushed at the pump,” said one GOP congressman backing the measure. “We can find the money elsewhere rather than making them pay more every time they drive to work.”
Democrats and some fiscal conservatives worry the move amounts to a budget gimmick that provides minimal savings while jeopardizing projects already underway. Several states have warned that uncertainty over federal funding could force them to delay or cancel road work scheduled for this construction season, potentially leaving projects half-finished and costing more in the long run.
The gas tax hasn’t increased since 1993, when it was set at 18.4 cents per gallon for regular fuel and 24.4 cents for diesel. Inflation has eroded its purchasing power by roughly 60 percent over three decades, contributing to chronic underfunding of transportation infrastructure even before a suspension enters the discussion.
Previous gas tax holiday proposals have failed to gain traction in Congress, partly because economists across the political spectrum question whether savings actually reach consumers or simply get absorbed by oil companies and retailers adjusting their margins. A 2022 analysis found state-level gas tax suspensions produced inconsistent results, with some states seeing no price drop at all.
The White House has not committed to a specific timeline for the suspension or identified which programs would absorb the revenue loss. Congressional leadership expects a vote within the next month.
Key Points
- Federal gas tax suspension would save average driver about $11 monthly, or $2.70 per fill-up
- Highway Trust Fund would lose roughly $6.5 billion over three months, threatening state road projects already scheduled
- Gas tax hasn’t increased since 1993, and economists question whether savings would actually reach consumers or get absorbed by oil companies
https://www.cnbc.com/2026/05/12/trump-gas-tax-suspension.html – May 12, 2026
