Gas Tax Freeze: Trump’s Big Promise

With gas prices surging past $4.50 a gallon due to the ongoing conflict with Iran, President Trump is pushing to suspend the federal gas tax — but the relief may be smaller than it sounds, and the road to implementation is anything but clear.

Quick Take

Trump announced plans to temporarily suspend the federal gas tax of 18 cents per gallon on regular gasoline and 24 cents on diesel amid Iran war-driven price spikes.
The national average has climbed to $4.52 per gallon, up from $4.13 just a month ago, putting real pressure on household budgets.
Any suspension requires Congressional approval, and critics warn it could drain the Highway Trust Fund used to pay for roads, bridges, and transit projects.
Some analysts call the relief “very minimal” from an economic standpoint, and Trump himself previously endorsed a 25-cent gas tax increase for infrastructure.

Trump’s Announcement and What He’s Promising

Speaking to CBS News on May 11, 2026, President Trump confirmed he intends to suspend the federal gas tax for a period of time, saying, “We’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.” [5] When pressed on how long the suspension would last, Trump offered little precision: “Till it’s appropriate.” The announcement came as conflict with Iran has rattled global oil markets and driven pump prices sharply higher across the country. [1]

Trump also pointed to longer-term relief from domestic production increases, citing output from Texas, Louisiana, and Alaska, and claimed that roughly 20 percent of global oil had previously moved through the Strait of Hormuz. [1] Energy Secretary Chris Wright confirmed the administration is actively considering the suspension, signaling it is more than just a passing comment from the president. [7] The proposal has drawn bipartisan interest, with the Gas Prices Relief Act of 2026 co-sponsored by Senator Mark Kelly, a Democrat from Arizona, calling for suspension of the federal gas tax through October 1. [2]

How Much Relief Would Drivers Actually See?

The federal gas tax stands at 18 cents per gallon on regular gasoline and 24 cents per gallon on diesel. [2] With the national average currently at $4.52 per gallon — up nearly 40 cents from just a month ago — subtracting 18 cents would bring the average closer to $4.34. One financial analyst quoted by Barron’s described the impact as “very minimal” and said it “doesn’t matter from an economic standpoint.” [4] The savings are real but modest, and there is no guarantee retailers would pass the full tax cut through to consumers at the pump.

Historical context adds further skepticism. The federal gas tax has never actually been suspended, despite proposals during the 2008 oil spike and the 2022 inflation surge. State-level tax holidays have been tried in at least 18 states since 2000, with mixed results on actual consumer savings. The gap between proposal and implementation has consistently come down to the same two obstacles: Congressional approval and highway funding. This time appears to be no different.

The Highway Trust Fund Problem — and a Credibility Question

Federal gas tax revenue flows directly into the Highway Trust Fund, which finances road construction, bridge repairs, and public transit projects across the country. Suspending the tax, even temporarily, would reduce that funding stream with no identified replacement source. [5] Infrastructure advocates have long warned that the fund is already underfunded, and opponents of the suspension argue that cutting revenue now would force difficult trade-offs on projects already in the pipeline. No Congressional Budget Office score of the Gas Prices Relief Act of 2026 has been made public to quantify the shortfall. [2]

US releases 53.5M more SPR barrels; Trump backs federal gas tax pause. Peru energy crisis threatens silver supply, prices may surge. Copper sheet/plate sector hits 4-year high in April. pic.twitter.com/p6JkgxiPcy

— News (@News2057533) May 12, 2026

There is also a credibility issue worth noting. Trump previously endorsed a 25-cent-per-gallon increase in the federal gas tax to fund infrastructure improvements — a position documented by both CBS News and the Washington Examiner. [3] [6] That is a 43-cent swing from his current proposal. Both positions may have been driven by the political needs of the moment, but the reversal gives critics ammunition to question whether this announcement is a serious policy commitment or a pressure-release valve during a difficult news cycle. What is clear is that millions of Americans are paying more at the pump, the Iran conflict shows no firm resolution date, and Washington has yet to produce a concrete plan with a timeline, a bill number, or a funding offset that would make relief real.