Trump Pushes Federal Gas Tax Suspension as National Average Tops $4.52/Gallon — Congressional Legislation Introduced

President Trump announced on May 12, 2026 his intention to pursue a temporary suspension of the federal gas tax as average pump prices surged above $4.52 per gallon nationally — more than 50% higher than before the US-Iran war began on February 28. The federal gasoline tax is 18.4 cents/gallon (and 24.4 cents/gallon for diesel), established by the Highway Revenue Act of 1956. Suspending it requires an act of Congress and would redirect funds away from the Highway Trust Fund at a rate of approximately $500 million per week. Economists estimated the tax holiday could reduce average pump prices by roughly 4% — providing modest but immediate consumer relief. Sen. Josh Hawley (R-MO) and Rep. Anna Paulina Luna (R-FL) both introduced legislation on May 11–12 to suspend the tax for an Iran war emergency period. NPR noted the proposal echoes Biden's 2022 gas tax holiday push, which also required congressional action and ultimately did not pass. The Trump administration framed the proposal as urgency relief for American families who, in some coastal and urban markets, are paying above $5.50–6.00/gallon. The Iran war naval blockade has effectively removed 8 million barrels per day of Persian Gulf oil from global supply, driving Brent crude above $108/bbl. The gas tax proposal was seen as politically driven in part by Trump's sagging approval ratings (34–37% per recent polls), which have been significantly pressured by the war's economic impact.