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Finance

Can Trump Freeze Federal Gas Taxes at Low Prices?

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President Donald Trump said on Monday that the US government would suspend the federal gas tax of 18.4 cents per liter after prices fell by $4.50 last week.

“We’re going to remove the gas tax for a period of time, and if the gas goes down, we’re going to put it back,” Trump told CBS News.

Such a move would not be possible. The Constitution gives Congress, not the president, the power to tax, and Congress has never suspended the gas tax, which began in 1932.

Trump has not said whether he intends to ask Congress to speed up the bill or skip the process by signing an executive order aimed at easing the gas tax. But experts say the first is the only effective way.

Before Trump’s announcement on Monday, legislation to freeze the federal gas tax, which is charged to drivers on every gallon of gas purchased, was on hold. While Trump’s words will likely provide new momentum, it could still be an uphill battle.

Knowing that higher gas prices are a political liability for the Republican Party in a midterm election year, Democrats may be reluctant to throw Trump a bone. They will probably continue to argue that the best solution to high gas prices is to end the war in Iran, since the main factor driving up prices is the ongoing blockade of the Strait of Hormuz.

On the other side of the aisle, conservative Republicans may oppose a gas tax freeze because it would increase the national deficit, which was $1.8 trillion last fiscal year.

The Gas Price Relief Act of 2026, which would freeze the gas tax on Oct. 1, has two Senate sponsors: Sen. Mark Kelly, D-Ari., and Richard Blumenthal, D-Conn. The House version has one sponsor, Rep. Chris Pappas, DN.H.

On Monday, Sen. Josh Hawley, R-Mo. announced to X that he intends to introduce a separate piece of legislation to freeze the gas tax. He did not say exactly how his bill would differ, but it is unlikely to have an October 1 date on it considering that Trump has repeatedly told the American people that the war will end sooner than that.

Just over 10 weeks into the Iran war, gasoline prices have risen 52% from $2.98 in Feb. 28 to $4.52 today, according to AAA. Filling a standard 14-gallon tank now costs about $63.28 — of which the state gas tax includes about $2.58.

At a White House event on Monday, the president predicted that the American people would see “gasoline and oil drop like a rock” once the conflict ends. So far, however, the war has taken longer than the president said it would, while fuel prices have risen more than expected. Consumers paying high prices for their commute are getting impatient.

Drivers also pay more than 30 cents, on average, in federal gas taxes, according to the US Energy Information Administration. Trump has asked states to offer gas tax relief, but so far, only three have: Georgia, Indiana and Utah.

Before Georgia suspended its gas tax for 60 days on March 20, the gas tax ranged from 9 cents in Alaska to about 71 cents per gallon, accounting, in California. With more than a week left in Georgia’s shutdown, it’s unclear whether lawmakers will extend it or let it expire.

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