Trump and Republicans Weigh Suspending Federal Gas Tax as Iran War Lifts Pump Prices
The White House and congressional Republicans are floating a suspension of the 18.4-cent federal gas tax to soften the spike in pump prices caused by the Iran war. Trump faces growing pressure on the economy as the 2026 midterm elections approach.
President Donald Trump and Republican leaders in Congress said they are working on plans to temporarily suspend the 18.4-cent federal gasoline tax. The move comes as the war with Iran has pushed crude oil above $100 a barrel, sending pump prices to levels that voters say are weighing heavily on household budgets.
Republican officials told CNBC the proposed cut is intended to give drivers some relief during the summer and to repair the administration's economic record ahead of the 2026 midterm elections. Recent surveys show voters growing more critical of Trump's handling of the economy.
Because the federal gas tax is the main source of funding for the Highway Trust Fund, lawmakers have yet to clarify how a suspension would affect infrastructure spending. Whether the proposal moves quickly through Congress will depend on negotiations expected over the coming weeks.
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