Overview
- Trump, who said Monday he wants to pause or reduce the federal gas tax, is targeting the 18.4 cents per gallon levy as drivers face a price spike linked to the Iran war.
- Following those remarks, Sen. Josh Hawley introduced a 90‑day suspension bill and Rep. Anna Paulina Luna said she would file a House version, though passage remains uncertain as leaders question its merits and fiscal costs.
- Because the tax is collected upstream, analysts expect only partial savings at the pump, with Penn Wharton modeling about 72% pass‑through or roughly 13 cents of the 18.4‑cent tax reaching consumers after a lag.
- The Highway Trust Fund would lose billions without offsets, with the Committee for a Responsible Federal Budget estimating about $3.5 billion for one month or $21 billion for a six‑month pause.
- AAA puts the national average near $4.50 a gallon, about 50% higher since late February as Iran’s threats around the Strait of Hormuz disrupted oil flows, and experts say lasting relief depends on supply improving rather than tax changes.