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Trump Backs Federal Gas Tax Holiday as Congress Weighs Short-Term Relief

Any pause would need congressional approval, with most analysts expecting only modest savings at the pump.

Overview

  • Trump, who voiced support Monday, set off a new push as Sen. Josh Hawley filed a 90‑day suspension bill and Rep. Anna Paulina Luna said she will introduce a House version.
  • Economists say drivers would see only part of the 18.4‑cent tax cut, with Penn Wharton estimating about 72% pass‑through that works out to roughly 10 to 15 cents per gallon.
  • Suspending the levy would drain the Highway Trust Fund, with Penn Wharton estimating about $8.35 billion in lost revenue over four months and more if diesel’s 24.4‑cent tax is also paused.
  • Gas prices have jumped about 50% to roughly $4.50 a gallon since late February after Iran restricted tanker traffic through the Strait of Hormuz, and experts say easing the supply squeeze would do more to cut costs.
  • States including Georgia, Indiana, Kentucky, and Utah have already delivered temporary relief, while congressional leaders signal mixed views on a federal holiday and how to cover the funding gap.