Politics
President Donald Trump Says He’ll Suspend Federal Gas Tax ‘for a Period of Time’ Amid Soaring Prices
President Donald Trump announced plans to temporarily suspend the federal gas tax as fuel prices continue to surge in the wake of the ongoing conflict with Iran.
In a phone interview with CBS News on Monday, May 11, President Trump, 79, confirmed the move, 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.”
He added, “I think it’s a great idea.”
Gas prices have climbed more than 50% since the Iran war began on Feb. 28, reaching over $4.52 on Sunday, according to AAA. Per the report, the federal excise tax currently sits at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel.
However, suspending the tax requires congressional approval, and pausing it would cost the federal government roughly half a billion dollars per week. Revenue from the tax funds the Highway Trust Fund, which pays for road construction, repairs and transit projects.
Republican lawmakers quickly signaled support. Per CBS News, Sen. Josh Hawley announced via X on Monday, May 11 that he would introduce legislation to suspend the federal gas tax, and Rep. Anna Paulina Luna of Florida also took to X to share that she plans to introduce a similar bill in the House this week “in light of Trump’s recent remarks. Per Luna’s social media post, “American families need this relief on gas prices. My office will be working directly with President Trump to ensure we deliver this win for the American people.”
The president also shut down the idea of a bailout for U.S. airlines struggling with jet fuel costs that have more than doubled since the start of the war. A bailout proposal “hasn’t really been presented,” he told CBS News, adding, “The airlines are doing not badly.” Budget carrier Spirit Airlines shut down earlier this month amid surging fuel costs.
During the call, President Trump also weighed in on Iran’s latest peace proposal, which he rejected over the weekend, calling it “a bad proposal, a stupid proposal, actually … done by people that have no clue as to the danger they’re in.” When asked whether Iran made any concessions regarding its nuclear program, he replied, “Yeah, for sure, but not nearly enough.”
