President Donald Trump said Tuesday that he is considering suspending the federal gasoline tax nationwide as Americans continue to face elevated fuel prices.
Trump said his administration is looking at the proposal as a potential way to provide relief to drivers. No final decision has been announced, and a suspension of the federal gasoline tax would require congressional action.
The federal gasoline tax currently stands at 18.4 cents per gallon, while the federal diesel tax is 24.4 cents per gallon. Revenue from the taxes is primarily used to fund the Highway Trust Fund, which supports federal transportation infrastructure, including highway projects.
Trump has previously supported temporarily removing the gas tax during periods of high fuel prices. In May, he said he wanted the tax suspended "for a period of time," arguing that it could be allowed to return once gasoline prices decline.
The latest consideration comes as fuel costs remain a concern for consumers and businesses. Higher gasoline and diesel prices can also increase transportation costs, putting additional pressure on the prices of groceries and other goods.
A federal gas-tax suspension would not be unprecedented as a proposal, but the federal fuel tax itself has never been suspended since the Highway Trust Fund was established in 1956. Several lawmakers from both parties have introduced or supported legislation seeking temporary relief from the tax.
The proposal also comes as the administration pursues other measures to reduce fuel costs. On Monday, Trump signed an executive order providing temporary diesel-tax relief by allowing certain tax-free dyed diesel fuel to be used on highways and deferring some federal diesel tax payments through the end of 2026.
Any broader suspension of the gasoline tax would have implications for federal transportation funding. Analysts have warned that eliminating the tax would reduce revenue flowing into the Highway Trust Fund, potentially requiring Congress to use other federal funds to maintain infrastructure spending.
For now, Trump has not announced a timeline or specific proposal for suspending the gasoline tax. The administration's consideration comes as Republicans and Democrats in Congress have separately explored temporary fuel-tax relief as a way to reduce the burden of high energy costs on American consumers.
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