Overview
- President Trump, who told CBS News on Monday he would pause the levy “for a period of time,” later said it would last “until it’s appropriate,” as Sen. Josh Hawley filed a bill and Rep. Anna Paulina Luna pledged one this week.
- The president cannot suspend federal taxes on his own, so any gas-tax holiday would require an act of Congress.
- Removing the 18.4-cent gasoline tax would cut pump prices by roughly 10–16 cents, or about 3–4%, with AAA’s national average at $4.52 on Monday.
- Analysts warn the pause would sap the Highway Trust Fund that pays for roads and transit, with estimates of about $500 million per week or roughly $17 billion over five months.
- Prices have surged since the Iran war choked tanker traffic through the Strait of Hormuz, and steps like oil reserve releases and shipping waivers have not overcome the supply squeeze as some states extend their own tax breaks.