Washington– President Donald Trump said Monday he would move to suspend the federal tax on gasoline to help Americans afford it High fuel prices resulting from the Iran war.
The president cannot suspend the federal tax on his own. Congress will have to approve the move.
Lawmakers from both parties have pushed to suspend the gas tax, saying it would provide just that Much-needed relief for families and businesses Who depend on their cars and trucks to get to work, school, and daily errands.
As of Monday, the national average gas price was $4.52 per gallon, according to AAA Auto Club, 50% higher than the average price of just under $3 per gallon before Trump started the war against Iran.
The federal tax is currently set at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel, an amount that does not include state taxes, which are often higher. The tax provides more than $23 billion annually in revenue for federal highway and public transportation programs.
In response to a question from reporters at the White House about how long the tax should be suspended, Trump said: “Until it is appropriate.” Trump said that while the tax represents only a small percentage of the price of gas, “it’s still money.”
With gas prices rising, The Trump administration has Release of millions of barrels of oil of the US Strategic Petroleum Reserve and temporarily lift sanctions on some Russian and Iranian oil shipments already at sea. The United States is Negotiating with countries that depend on Middle Eastern crude To join a police alliance Strait of HormuzIt usually flows about a fifth of the world’s circulating oil.
Republican Sen. Josh Hawley of Missouri said on social media Monday that he would introduce legislation to suspend the gas tax. Democrats have previously sponsored similar legislation. Rep. Ana Paulina Luna, Republican of Florida, also said: Share on X She will introduce a bill “to suspend the federal gas tax in light of Trump’s recent statements.”
Senate Majority Leader John Thune said Monday he wasn’t “a fan” of suspending the gas tax, but added: “You know, I have some colleagues who think it’s a good idea. So, we’ll listen to them.”
Thune, a Republican from South Dakota, said he favors reopening the Strait of Hormuz to “normalize gas prices” without legislation. “Obviously any time the gas tax is suspended, it leaves a big hole in the highway trust fund, which will also have implications down the road,” he said.
Senator Rand Paul, Republican of Kentucky, said, “Instead of suspending the tax, we should suspend the war.”
The persistent rise in gas prices has raised concerns among some Republicans that it could hurt the party’s chances in the midterm elections.
Sen. John Cornyn, who is in a tough runoff later this month to keep his seat, said he wants to know how roads and bridges will be paid for if the tax is raised. But he said there is “a difference between a temporary suspension and a permanent suspension.”
“A temporary suspension to get through this kind of difficult time due to the uncertainty of energy prices, I can live with that,” he said.
Trump previously said that high fuel prices were worth paying to prevent Iran from obtaining a nuclear weapon. This hard-line message seemed to ease on Sunday when Energy Secretary Chris Wright said that the Trump administration was “open to all ideas,” including suspending the gas tax, during an interview with him on CNN. “Meet the Press” on NBC.
A bill sponsored by Democratic Senators Richard Blumenthal of Connecticut and Mark Kelly of Arizona would suspend the federal tax until October 1. A similar measure was sponsored in the House by Democratic Rep. Chris Pappas of New Hampshire.
“Trump’s war of choice with Iran is driving up gas prices across the country — and Americans should not bear the additional economic burden caused by Trump’s reckless decision-making,” Blumenthal said in his introduction of the bill.
Kelly told reporters Monday that he still favors legalizing it but would take “whatever we can get at this point.”
“People need relief,” he added.
Several states, including Indiana and Georgia, recently suspended their taxes to mitigate rising prices amid the war. Kentucky and Utah have reduced their state taxes. Other states are considering similar suspensions or tax cuts.
The gasoline tax is the single largest source of revenue for federal highway and public transportation programs.
While the proposed bills will compensate for any loss Highway Trust Fund revenues With public funds, a tax suspension could increase the federal deficit and jeopardize the long-term sustainability of investments in highway and public transit programs, according to American Road. & Transportation Builders Association, which represents the transportation construction industry.
The group cites studies showing that many retailers do not pass on the full amount of the gas tax reduction to consumers. Research also suggests that state and federal gas taxes are just one element of a complex pricing plan that includes the global price of oil and other factors.
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Associated Press writers Kevin Freking and Stephen Sloan in Washington contributed to this story.