US trucking and construction industries push back on Trump's gas tax pause
President Donald Trump's plan to pause the federal gas tax to ease Iran-war pump prices is meeting resistance from trucking and construction groups. Industry leaders warn the move would drain highway maintenance funds and raise long-term freight costs.
The White House said it is weighing a temporary suspension of the federal gas tax as the Iran war continues to weigh on global oil markets. Trump pitched the idea over the weekend as direct relief for consumers.
Representatives of the American Trucking Associations and the Associated General Contractors of America told CNBC that the 18.4-cent-per-gallon levy flows directly into the Highway Trust Fund, which finances bridges, road resurfacing and traffic-safety programs. They argue that any holiday would punch a multibillion-dollar hole in the infrastructure budget.
Congressional sources said Republican leaders want to study the proposal further. Economists are also split on whether a tax break would deliver a meaningful drop at the pump, given that disruptions in the Strait of Hormuz keep pushing crude prices higher with each passing week.
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