Trump says he is weighing a federal gas tax holiday
President Trump says his administration is "thinking about" suspending the 18.4-cent federal gas tax as fuel prices stay high. Only Congress can do that, and lawmakers are not due back until after the Nov. 3 election. Several states have already paused their own fuel taxes.
President Donald Trump says he is considering a break from the federal gas tax as high fuel prices weigh on voters.
"We're thinking about that," Trump told reporters at the White House on Tuesday when asked about suspending the tax.
He cannot do it alone. Only Congress can suspend the tax, and the House and Senate are not scheduled to return until after the Nov. 3 election, the New York Post reported. Trump gave no plan for how a pause would pass, The Guardian reported.
The federal tax adds 18.4 cents to each gallon of gasoline and 24.4 cents to each gallon of diesel. Dropping it would cut about 4% from the price of regular gas. The tax raises more than $23 billion a year for highways and public transit, The Guardian noted.
Trump first floated the idea in May, after the Iran war pushed fuel prices up. They have stayed high. Gas averaged about $4.37 a gallon this week, up from $3.13 a year ago, according to AAA figures cited by the Post. Diesel averaged $6.32, down from a record $6.53 on Sept. 22 but nearly double last year's price.
On Monday, Trump signed an order letting truckers buy tax-free "red dye" diesel through Dec. 31. That fuel is normally used for tractors and construction equipment. G-7 nations also agreed last week to release 100 million barrels of oil and diesel from reserves.
Some states have moved on their own. Ohio waived its 38.5-cent gas tax through Dec. 31. Georgia suspended its 33.3-cent gas tax through at least Oct. 29. Utah cut its tax by 6 cents, and Indiana suspended some fuel taxes. Kentucky paused automatic increases to its fuel taxes.
Trump said he expects Republicans to "do very well" in the midterms. "Prices are now coming way down," he said. "And oil, as soon as the war is over, which will be soon, will be coming way down." He did not say when the war would end.
What we know: A federal pause would need a vote in Congress.
What we don't: Whether Trump will formally ask lawmakers to return and act.
Where outlets agree The New York Post and The Guardian both report Trump said "We're thinking about that" and that only Congress can suspend the federal gas tax.
Where they differ Trump says prices are "coming way down," while AAA figures show gas and diesel still well above where they were a year ago.