Trump Considers Tax Pause
President Trump stated he is considering suspending the federal gas tax. He made these comments after four states already moved to lower fuel costs for voters. The president told reporters at the White House, “We’re thinking about that,” regarding the idea. This comes as families struggle with high pump prices ahead of the midterm elections.
Trump spoke just one day after he signed an executive order in Grand Island, Nebraska. Currently, that order permits truckers to utilize tax-exempt dyed diesel on highways. This action aims at the 24.4-cent diesel tax alongside the 18.4-cent-per-gallon federal gasoline tax. However, ending these taxes requires an act of Congress.
States Lead the Way
While the federal government debates, four states have already enacted their own waivers. States led by both Democrats and Republicans have enacted temporary waivers or relaxed regulations. The average cost of diesel is now $6.32 per gallon, according to the New York Post. Gasoline prices have risen significantly as well, now averaging $4.37 per gallon. This is a sharp jump from the $3.13 average seen last year.
G-7 nations, including the UK, France, Germany, Italy, Canada, and Japan, agreed to release oil. They plan to release 100 million barrels from strategic reserves to help tamp down prices. These global efforts aim to lower costs, but local state actions have already started. The pressure on the federal government to act is growing as election day nears.
Congress Must Act
To advance the plan, President Trump needs Congress to return to Washington. Neither the Senate nor the House is set to resume sessions until after the election. This timing creates a hurdle for any immediate change in federal tax law. Republican Maryland Rep. Andy Harris introduced a bill on Sept. 15 to suspend fuel taxes. But leadership decided against a vote when it became clear the party did not agree.
House Speaker Mike Johnson said the Republican conference did not support bringing the bill to the floor. Republican Missouri Rep. Sam Graves, who chairs the House Transportation Committee, also opposed the measure. The president has previously stated his intent to remove the tax temporarily. In May, he told CBS News he intends to suspend the gas tax temporarily and allow it to gradually return once fuel prices fall. Now he says he is thinking about doing it again.
Next Steps for Voters
The executive order signed Monday allows truckers to buy tax-free “red dye” diesel through Dec. 31. This specific relief helps the shipping industry while broader tax changes remain in limbo. The federal tax funds highway and bridge maintenance, so any pause raises questions about future repair costs. No one has said how those funds will be replaced if the tax goes away. The average American driver will watch closely to see if Washington can move fast enough.
