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Trump Proposes Federal Gas Tax Suspension Amid Rising Fuel Prices

KVIA•Tuesday, May 12, 2026 at 1:06 AM•CNN Newsource

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President Donald Trump announced plans to suspend the federal gas tax as fuel prices soar due to ongoing tensions in the Middle East. The federal tax, currently at 18.4 cents per gallon for gasoline and 24.4 cents for diesel, is unlikely to provide significant relief to consumers, with experts predicting only a minor decrease in prices. A suspension could also negatively impact the Highway Trust Fund, which relies on these taxes for transportation financing. Additionally, Congress must approve any tax suspension, a process that has historically faced resistance. The average gas price has surged to $4.52 per gallon, up from $2.98 before the conflict escalated.

Key Details: • Federal gas tax is 18.4 cents per gallon; diesel tax is 24.4 cents. • Average gas price reached $4.52 per gallon as of Monday. • Suspension could reduce gas prices by approximately 13.2 cents per gallon. • Congress approval required for tax suspension; historically difficult to achieve. • Potential revenue loss of $17 billion for the Highway Trust Fund if suspended.

economy trump congress gas-tax fuel-prices

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Donald TrumpKentuckyUtahGeorgiaJoe BidenIndianaUnited StatesBrian KempBipartisan Policy CenterPenn Wharton Budget ModelMike BraunUniversity of Tufts

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