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Trump Proposes Federal Gas Tax Suspension Amid Rising Fuel Prices

KVIA•Monday, May 11, 2026 at 9:50 PM•CNN Newsource

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President Trump announced plans to suspend the federal gas tax, currently at 18.4 cents per gallon, in response to soaring gas prices, which have reached an average of $4.52 nationwide. Experts warn that this suspension may not significantly alleviate consumer costs, as retailers often do not pass on the full savings. Additionally, the Highway Trust Fund, reliant on this tax for transportation funding, could face a $17 billion revenue shortfall if the tax is suspended. Lawmakers would need to approve this measure, which has historically faced resistance. Meanwhile, several states have enacted their own gas tax holidays to provide immediate relief to drivers.

Key Details: • Federal gas tax is 18.4 cents per gallon; suspension requires congressional approval. • Average gas price has increased from $2.98 to $4.52 since February 28. • Suspension could reduce gas prices by approximately 13.2 cents per gallon. • Highway Trust Fund could lose $17 billion in revenue over five months. • States like Georgia and Indiana have already suspended their gas taxes.

economy trump transportation gas-tax fuel-prices

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