Trump Mulls Federal Gas Tax Pause as Pump Prices Surge Ahead of Midterms

Amid soaring national fuel prices, President Donald Trump told reporters the White House is weighing a temporary halt to the federal gasoline tax. The proposal follows an executive order that already permits tax-free dyed diesel on roads until the end of the year. While Trump did not specify a schedule, Republican officials including Senate Majority Leader John Thune and House Ways and Means Chairman Jason Smith expressed willingness to consider measures that would lower pump costs before the November midterms.

Current average gasoline prices sit near $4.37 per gallon, with diesel above $6 per gallon, prompting calls for relief. Policy analysts estimate that a full tax suspension could shave roughly 4 % off gasoline prices, but past state experiments suggest only 10-16 cents per gallon might be passed to consumers, yielding limited savings. A suspension would also deprive the federal government of about $41 billion annually, a substantial portion of the Highway Trust Fund’s budget. Congressional approval would be required, and bipartisan support remains uncertain as Democrats target control of both chambers in the upcoming elections.