Trump weighs suspending federal gas tax
Finn Gomez/Getty Images News
President Donald Trump said he is considering a suspension of the federal gas tax as elevated fuel prices remain a major concern for voters ahead of the midterm elections in November.
"We're thinking about that," Trump said when asked by a reporter if the tax would be suspended. He did not provide any further details.
Suspending the 18.4 cents-per-gallon tax would require lawmakers' approval, an unlikely prospect ahead of the midterms as Congress is on recess. A few states have already moved to temporarily suspend or ease state gas taxes.
Trump's comment came a day after he signed an order during a campaign stop to expand access to tax-exempt red-dye diesel.
A federal gas tax suspension could lower prices at the pump by 10 to 16 cents per gallon, according to the Bipartisan Policy Center's estimates earlier this year.
But a potential five-month pause would reduce federal gas tax revenue by ~$17B, or 46% of total projected FY 2026 gas and diesel tax revenue to the Highway Trust Fund.
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