Congressional leaders from both parties say they are willing to discuss President Trump’s proposal to temporarily suspend the federal gasoline tax (18.4¢/gal), but they have not endorsed specific legislation. Lawmakers question whether the savings would reach consumers, and they worry a holiday would drain the Highway Trust Fund unless offset by general funds. Political and fiscal concerns have left the proposal stalled as leaders await further White House engagement.
Gas Tax Holiday Stalls as Congress Weighs Limited Consumer Benefit and Highway Funding Risk
Gasoline tax holiday push already sputtering in Congress
Congressional leaders from both parties are proceeding cautiously after President Donald Trump urged a temporary suspension of the federal gasoline tax, saying the proposal offers limited immediate relief at the pump and could undermine funding for highways.
Lawmakers said Tuesday they are open to discussing a short-term pause of the federal gas tax — officially 18.4 cents per gallon — but Capitol Hill has not embraced specific legislation. Roughly 24 hours after the president’s public push, and more than two months into a Middle East conflict that has pushed fuel prices higher, leaders prefer to wait and see whether the White House will press Congress directly.
Why Leaders Are Hesitant
Speaker Mike Johnson (R-La.) called the idea “certainly intriguing” but warned Republicans must consider potential "unintended consequences" before advancing a bill. House Majority Leader Steve Scalise (R-La.), who controls the House calendar, did not commit to scheduling a vote, and Senate leadership similarly signaled caution.
“The question I always ask is — it’s 18.4 cents… if you lifted that, does that ultimately get passed on to the consumer? Or does it get sucked up in the supply chain somewhere?” — Sen. John Thune (R-S.D.)
Many lawmakers doubt whether an 18.4-cent cut would meaningfully reduce prices at the pump, or whether savings would be absorbed earlier in the supply chain. Those doubts have made both Republicans and Democrats reluctant to take political risks for what could be a modest payoff for consumers.
Funding And Political Trade-Offs
Complicating the proposal is the Highway Trust Fund, which depends on the federal gasoline tax for transportation projects. Critics say a pause would deplete the fund and jeopardize highway and transit spending unless Congress offsets the lost revenue.
Pending bills would cover the forgone gas-tax revenue with general fund dollars, an approach likely to face resistance from deficit-conscious lawmakers. “We’re going to gut the highway fund, and still the price of gas will be higher than ever?” asked Sen. Brian Schatz (D-Hawaii), calling the idea a gimmick whether proposed by Democrats or Republicans.
House Transportation and Infrastructure Chair Sam Graves (R-Mo.) called a holiday “a short-term fix” and said he is focused on protecting the trust fund while working on a highway bill this year.
Political Maneuvering And Potential Offsets
Some Democrats have proposed pairing a gasoline tax holiday with a windfall profits tax on oil companies to capture excess energy sector gains. Industry groups such as the American Petroleum Institute and the American Exploration and Production Council say they are not actively lobbying for a gas tax suspension.
Sen. Josh Hawley (R-Mo.), sponsor of the principal Republican Senate bill, said he had not been told by party leaders whether the chamber will take up his proposal. Sen. Mike Crapo (R-Idaho), chair of the Finance Committee, said his panel is not working on a suspension at the moment but that he is “open to looking at it.”
For now, congressional leaders appear willing to hear the president’s case but are reluctant to move quickly on a policy that could create funding shortfalls and deliver only limited consumer relief ahead of the November elections.
Reporters Ben Lefebvre, Mike Soraghan, Meredith Lee Hill and Jordain Carney contributed to this story.
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