Trump Backs Suspending the Federal Gas Tax as Hawley Files a Bill

President Trump said Monday he supports suspending the federal gasoline tax, and Sen. Josh Hawley, a Missouri Republican, introduced a bill to do it. Asked how long a suspension should last, Trump said “until it’s appropriate,” and he told CBS News the tax would come off “for a period of time” and be phased back in when prices fall, according to NBC News and Fox Business. Trump called the savings “a small percentage, but it’s still money,” NBC News reported.

Hawley’s Gas Tax Suspension Act would pause the 18.4-cent federal gasoline tax and the 24.4-cent diesel tax for 90 days after enactment, with presidential authority to extend the pause for another 90 days. Hawley said Trump is “exactly right” and that the bill would give working families immediate relief, Fox Business reported. Rep. Anna Paulina Luna, a Florida Republican, said she would introduce a House version, according to the AP. The president cannot act alone; Congress holds the taxing power.

Pressure from voters is driving the push. AAA put the national average at $4.52 a gallon Monday, about 50 percent above the just-under-$3 average before the war with Iran began, according to The Associated Press via PBS NewsHour. Energy Secretary Chris Wright said Sunday that the administration is “open to all ideas,” including a pause. The AP reported that some Republicans worry high prices could hurt the party in the midterm elections.

The idea has bipartisan roots. Democrats Mark Kelly of Arizona and Richard Blumenthal of Connecticut sponsored a bill in the Senate to suspend the tax through Oct. 1, and Rep. Chris Pappas of New Hampshire sponsored a House version; NBC noted it has stalled since it was introduced in March. Pappas urged Congress to pass a bill “this week.” Several states have acted on their own. The AP reported that Indiana and Georgia suspended their state gas taxes and Kentucky and Utah cut theirs.

The case for caution is about money and effect. The federal tax raises more than $23 billion a year for highway and transit programs, the AP reported, making it the largest single source of that funding. The American Road & Transportation Builders Association said the bills would backfill lost trust-fund revenue from general funds, which could add to the deficit, and that studies suggest many retailers do not pass the full cut through to drivers. The Bipartisan Policy Center estimates a pause would lower prices by 10 to 16 cents a gallon, with suppliers keeping the rest of the benefit, NBC reported, and that a five-month suspension could cost the Highway Trust Fund billions of dollars this fiscal year.

Supporters answer that drivers are being squeezed now and that the tax can be restored once prices ease. The administration has also released millions of barrels from the Strategic Petroleum Reserve and temporarily lifted sanctions on some Russian and Iranian oil already at sea, the AP reported, and is negotiating a coalition to police the Strait of Hormuz. Whether a pause can move quickly through Congress is unclear.