Federal Gas Tax Suspension Gains Traction as Prices Surge
Energy Secretary Chris Wright confirmed Sunday that the Trump administration is considering suspending the federal gasoline tax as average pump prices climb to $4.52 per gallon, the highest in four years. The federal tax currently stands at 18.3 cents per gallon, funding critical infrastructure projects through the Highway Trust Fund.
'We're open to all ideas to lower costs for consumers and businesses,' Wright stated on NBC's 'Meet the Press,' though he acknowledged that 'everything has tradeoffs.'
Democratic lawmakers, including Sen. Mark Kelly (D-Ariz.), have proposed legislation to temporarily halt the tax. However, the White House previously dismissed the idea, with an official stating last week that it was 'not currently under consideration.'
While a suspension could provide modest relief—shaving an estimated 10 to 16 cents per gallon—it would require congressional approval. The administration has already taken steps to mitigate rising fuel costs, including tapping the Strategic Petroleum Reserve and waiving the Jones Act to streamline fuel shipments.
Wright also highlighted the broader geopolitical risks to energy markets, emphasizing the threat posed by a nuclear-armed Iran. 'We need to make that tradeoff, or we have a long-term threat to peace in the region, long-term threat to energy supplies, long-term threat to Americans,' he said on CBS' 'Face the Nation.'
As midterm elections approach, the administration continues to explore measures to address high energy prices, which have become a significant political liability.