Trump Says He Will Seek Temporary Federal Gas Tax Suspension Amid Iran War Price Spike
President Trump said he intends to temporarily suspend the federal gasoline tax amid surging prices, telling CBS News on Monday, May 11, 2026, he would phase it back in when prices fall.[1]
He said suspending the 18.4-cent gasoline tax and 24.4-cent diesel tax would require action by Congress, and Sen. Josh Hawley filed legislation to suspend the levies for 90 days.[2]
On Feb. 28, 2026, U.S. and Israeli strikes on Iran and Iran's blockade of the Strait of Hormuz sharply reduced oil flows and sent global energy prices higher.[3] Average U.S. gasoline prices have risen roughly 50% since those strikes and now sit above $4.50 per gallon, contributing to April's 3.8% year-over-year CPI increase.[3]
Early reports framed the proposal as a direct response to war-driven price spikes and a politically timed move.[1] Analysts later said waiving the federal fuel levy would modestly lower pump prices and cost the Highway Trust Fund about $2.1 billion per month.[4] Policy groups warned a five-month holiday could drain nearly $17 billion and add roughly $12 billion to the federal deficit.[5]
Any pause would require an act of Congress and would waive federal levies of 18.4 cents per gallon on gasoline and 24.4 cents on diesel.[6]
The mainstream summary presents Trump's proposal as a straightforward response to rising gas prices, but the Wall Street Journal's Editorial Board critiques this framing, labeling the gas tax suspension as a gimmick that offers only limited relief while imposing significant costs on the Highway Trust Fund. They argue that policymakers should focus on more sustainable measures, like easing beef tariffs, rather than temporary fixes that may undermine fiscal supports. This perspective highlights a critical distinction between short-term political maneuvers and long-term economic strategies, which the mainstream account does not address.
Moreover, Nate Silver emphasizes that public perceptions of Trump's popularity are influenced by a complex interplay of economic indicators and foreign policy crises, suggesting that the gas tax proposal is as much about political optics as it is about addressing economic concerns. While the mainstream summary briefly touches on the political implications, it overlooks the nuanced understanding of how rising gas prices can affect presidential approval ratings and the implications for Trump's broader electoral strategy. This deeper analysis reveals the multifaceted nature of the issue, suggesting that Trump's proposal may not be as straightforward as it appears.
Show source details & analysis (15 sources)
📌 Key Facts
- President Trump told CBS News on Monday, May 11, 2026, he intends to suspend the federal gasoline tax “for a period of time” and phase it back in “when gas goes down” (he said the pause would last “until it’s appropriate”).
- Any suspension would require an act of Congress and would waive the federal fuel levies set by law — currently 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, according to NPR.
- Industry data cited across reports show national average gasoline is now above $4.50 per gallon and roughly 50% higher than before the Feb. 28, 2026 U.S.-Israel strikes on Iran (AAA figures were reported around $4.52 in early May), per reporting by PBS News.
- Analysts say consumer gains from a federal gas-tax holiday would be modest — CBS estimated waiving the federal 18.4¢ tax would cut average pump prices only to about $4.34 (diesel to ~$5.39), with a typical sedan saving up to about $2 per fill-up — while the Highway Trust Fund would lose substantial revenue (about $2.1 billion per month), according to CBS MoneyWatch.
- Policy groups project larger fiscal impacts: the Bipartisan Policy Center estimated a five‑month federal gas-tax holiday would cost the Highway Trust Fund nearly $17 billion (about 46% of projected 2026 revenue) and add roughly $12 billion to the federal deficit, as reported by MS NOW.
- Legislative responses followed: Sen. Josh Hawley introduced the Gas Tax Suspension Act on Monday, May 11, 2026, to halt federal gasoline and diesel taxes for 90 days with authority for the president to extend for another 90 days, and other lawmakers quickly filed or signaled support or opposition.
- Political reaction was mixed: some Republicans (including Senate Majority Leader John Thune and House Speaker Mike Johnson) expressed skepticism about whether savings would reach consumers or worried about unintended budget consequences, while some Democrats and other senators welcomed action to ease high prices, per MS NOW.
- The gas-price shock is feeding broader inflation: the Labor Department reported April 2026 Consumer Price Index rose 3.8% year-over-year and 0.6% month-to-month, with energy a major contributor and real average hourly wages down 0.3% year-over-year, according to reporting by PBS News.
📊 Analysis & Commentary (3)
Affordability Brainstorms, Good and Bad
"The WSJ editorial comments on President Trump's gas‑tax proposal (the matched story), praising tariff relief for beef as a good affordability move but explicitly criticizing the idea of suspending the federal gas tax as a gimmicky, costly, and ineffectual policy."
How popular is Donald Trump?
"The author argues that simple headlines about 'how popular Donald Trump is' mislead: approval ratings are noisy and driven by a mix of economic and foreign‑policy developments (like gas prices tied to the Iran war), poll methodology, and subgroup splits — so you need careful, nuanced polling analysis rather than single‑poll takes."
American Agriculture Can Lower Fuel Prices
"An Ohio farmer rebuts a Wall Street Journal editorial that painted the push for year‑round E15 as a sinister 'ethanol lobby,' arguing instead that expanding E15 access is a market-based, broadly supported way to lower pump prices by $0.10–$0.30 per gallon, help farmers, and boost domestic energy security (contextualized against recent $4.52/gal average gas prices discussed in news coverage)."
📰 Source Timeline (15)
Follow how coverage of this story developed over time
May 13, 2026
8:22 PM
Lawmakers clash over Trump gas tax holiday as Iran war drives prices higher
New information:
- On Monday, May 11, 2026, Sen. Josh Hawley introduced the Gas Tax Suspension Act to halt the federal gasoline and diesel taxes for at least 90 days, with authority for an additional 90‑day extension if prices remain high.
- AAA data cited in the article put average U.S. gasoline prices at $4.51 per gallon and diesel at $5.66 per gallon as of Wednesday, May 13, 2026, reflecting further increases since earlier reports.
- Several named lawmakers publicly staked out positions on Trump’s proposed gas tax holiday: Sen. Chris Murphy and Sen. Mazie Hirono rejected it and called instead for ending the Iran war, while Rep. Don Bacon said he is "amenable" to the suspension.
- Sen. Roger Marshall argued that authorizing year‑round sales of E‑15 ethanol-blended gasoline would lower prices by an estimated 30–40 cents per gallon, and said a separate "credit card" bill could add another 10–15 cents in savings.
- Rep. Don Bacon also said the U.S. should maintain or increase pressure on Iran and "finish" the Islamic Revolutionary Guard Corps, indicating some Republicans favor escalation despite fuel price spikes.
9:00 AM
Trump’s gas tax holiday has some Democratic allies — and plenty of GOP skepticism
New information:
- On Tuesday, May 12, 2026, Senate Majority Leader John Thune publicly questioned whether suspending the federal gas tax would reach consumers, asking if savings would "get sucked up in the supply chain somewhere."
- On May 12, 2026, House Speaker Mike Johnson called the gas-tax suspension "an intriguing idea" but said House Republicans are still "processing" it and weighing unintended consequences, without committing to a floor vote.
- The article reports that Sens. Mark Kelly and Richard Blumenthal, who in March 2026 proposed suspending the gas tax through Oct. 1, welcomed Trump's support, with Kelly saying gas prices are making it hard for people to drive to work and Blumenthal saying Trump was "late to the party."
- Sen. Josh Hawley introduced a bill on Monday, May 11, 2026, to suspend federal taxes on gasoline and diesel for 90 days, with authority for the president to extend the holiday for an additional 90 days.
- Republican senators Rick Scott and John Hoeven expressed conditional openness to a gas-tax holiday on May 12, 2026, while warning it would be only a short-term "Band-Aid" unless the Strait of Hormuz situation is resolved and signaling concerns over budget impacts.
May 12, 2026
9:09 PM
Trump on "the only thing that matters" in dealing with Iran
New information:
- On Tuesday, May 12, 2026, before departing for Beijing, President Trump told reporters that Americans' financial hardship from high gas prices is "not even a little bit" a motivation in his Iran negotiations.
- Trump said "the only thing that matters" in talks about Iran is ensuring the country "cannot have a nuclear weapon," adding that he does not think about Americans' financial situation when considering Iran policy.
- Trump contrasted his priority with market concerns, saying that even if the stock market moves "up or down a little bit," preventing an Iranian nuclear weapon is "by far" the most important objective.
- The article reiterates that April 2026 U.S. inflation was 3.8% year-over-year and that the average national gasoline price on May 12, 2026, was about $4.50 per gallon, with analysts warning prices could reach $5 if the Strait of Hormuz remains largely closed.
- Secretary of State Marco Rubio recently argued that a nuclear-armed Iran could close the Strait of Hormuz and drive U.S. gasoline to $8–$9 per gallon, limiting U.S. options to respond.
4:46 PM
Iran war hits home as gasoline prices fuel significant U.S. inflation jump
New information:
- On Tuesday, May 12, 2026, the Labor Department reported that the Consumer Price Index rose 3.8% in April from a year earlier, the biggest year-over-year increase in three years.
- From March to April 2026, overall CPI rose 0.6%, down from a 0.9% month-to-month gain from February to March when the initial Iran war shock hit.
- Labor Department data show gasoline prices rose 5.4% month-over-month in April and are more than 28% higher than a year earlier.
- AAA data cited in the article list average regular gasoline above $4.50 per gallon on Tuesday, May 12, 2026, about 44% more than at the same time in 2025.
- Core CPI, excluding food and energy, rose 0.4% from March to April and 2.8% from April 2025 to April 2026.
- Grocery prices increased 0.7% from March to April, with meat prices rising after a slight decline the prior month.
- After adjusting for inflation, average hourly wages in April 2026 were 0.3% lower than a year earlier, marking the first real wage decline in three years.
- The article ties the renewed inflation acceleration to the U.S.-Israel strikes on Iran on February 28, 2026, and Iran’s move to shut access to the Strait of Hormuz, sending global energy prices higher.
- The report notes the Federal Reserve has grown more cautious about cutting interest rates in 2026 as it assesses whether the energy shock will spill into broader inflation.
- President Trump has criticized the Fed and outgoing Chair Jerome Powell for not slashing rates and is awaiting Senate confirmation of Kevin Warsh as Powell’s successor, with uncertainty over how Warsh will respond to the new inflation data.
12:39 PM
Inflation rose 3.8% in April, highest level since 2023
New information:
- The Labor Department’s Consumer Price Index showed April 2026 inflation at 3.8% year-over-year, the highest since May 2023, according to data released Tuesday, May 12, 2026.
- Economists surveyed by FactSet had expected a 3.7% annual CPI rate for April, up from 3.3% in March, meaning the actual reading slightly exceeded forecasts.
- Inflation averaged 2.4% for January and February 2026 before jumping in March after the Iran war began, with the conflict now credited for pushing April gas prices to their highest level since July 2022.
- The article specifies that higher global oil prices from the Iran war are raising costs for diesel-powered trucking, which is expected to pass through to groceries and other manufactured goods.
- Mark Zandi of Moody's Analytics told CBS that he expects inflation to keep accelerating through the summer even if the conflict ends within weeks, then ease back to about 3.3% by year-end as energy effects fade.
12:36 PM
Inflation jumps to its highest level since 2023. Here are 3 things costing a lot more
New information:
- On Tuesday, May 12, 2026, the Labor Department reported that April 2026 consumer prices were 3.8% higher than a year earlier, the largest annual increase since May 2023.
- The CPI rose 0.6% between March and April 2026.
- Energy was a major contributor: the article reports the average U.S. regular gasoline price at $2.50 per gallon in early May, up 38 cents from a month earlier, with the jump in energy accounting for about 40% of April's monthly CPI increase.
- The piece says diesel fuel prices have risen by $1.88 per gallon since the U.S. war with Iran began, and that airfares increased 2.8% in April and are more than 20% higher than a year earlier.
- It notes that "core" CPI, excluding food and energy, was 2.8% year-over-year in April 2026.
- Housing costs rose 0.6% between March and April 2026, and the article attributes some of that apparent jump to statistical effects from the six-week federal government shutdown in October 2025 that interrupted housing data collection.
May 11, 2026
11:28 PM
Trump wants to suspend gas tax amid high prices due to war with Iran
New information:
- In a CBS News interview aired Monday, May 11, 2026, President Trump said he wants to 'temporarily lift the federal gas tax' as prices rise during the war with Iran.
- In the same interview, Trump characterized Iran's latest written response to end the war as 'a bad proposal ... done by people that have no clue as to the danger they're in.'
10:18 PM
Trump says he supports temporary suspension of federal gas tax
New information:
- On Monday, May 11, 2026, Trump told reporters in the Oval Office he would support temporarily suspending the federal gas tax and indicated it would last until "it's appropriate" and the Iran war is over.
- The article specifies that average U.S. gasoline prices have reached $4.52 per gallon, up almost 52% since the war with Iran began in late February, and directly links this to Iran’s earlier closure of the Strait of Hormuz.
- The piece reiterates that any gas tax suspension would require congressional action because the rates are set by federal law and cannot be unilaterally changed by the president.
- It cites Bipartisan Policy Center estimates that a five‑month federal gas tax holiday would cost the Highway Trust Fund nearly $17 billion (about 46% of projected 2026 revenue) and add roughly $12 billion to the federal deficit.
- The article notes a March Democratic proposal that would use general federal funds to backfill the Highway Trust Fund during any gas tax holiday.
- Energy Secretary Chris Wright told NBC News on Sunday that the Trump administration is "open to all ideas" to lower fuel costs, framing the gas tax holiday as one of several options under consideration.
- Sen. Josh Hawley and Rep. Anna Paulina Luna said Monday they will introduce legislation in Congress to suspend the federal gas tax in response to Trump’s comments.
6:00 PM
WATCH: Trump says Iran ceasefire is on 'life support'
New information:
- In May 11, 2026 White House comments reported by AP, Trump again backed suspending the federal gasoline and diesel taxes, explicitly tying the move to war-driven prices that pushed fuel above $4.50 per gallon the prior week.
- The article restates that the federal gas tax generates more than $23 billion per year and would require congressional approval to suspend.
- Trump forecast that oil and gas prices would fall 'like a rock' once hostilities with Iran end, linking his tax proposal to his expectations about the war’s duration.
5:19 PM
WATCH: Trump announces new rule establishing an optional fertility benefit for workers
New information:
- On Monday, May 11, 2026, during an Oval Office appearance, Trump again said he would suspend the federal gas tax amid higher prices from the Iran war, answering 'yes' when asked if he would do so.
- He said the federal gas tax suspension would last 'until it's appropriate' and predicted oil and gas prices would drop 'like a rock' once hostilities with Iran end.
4:59 PM
Trump wants to suspend the federal gas tax as prices soar amid war with Iran
New information:
- On Monday, May 11, 2026, Trump told reporters in the Oval Office that he wants the gas tax suspended 'for a period of time' and reintroduced 'when gas goes down,' adding it should last ''Til it's appropriate.'
- The article reiterates that suspending the federal gas tax would require an act of Congress and specifies current tax rates of 18.4 cents per gallon for gasoline and 24.4 cents for diesel.
- NPR cites AAA data showing the national average price of regular gasoline has risen by more than 50% from just under $3 per gallon before the U.S. bombed Iran to $4.52 per gallon, with blockades in the Strait of Hormuz constraining global oil flows.
- An NPR/PBS News/Marist poll cited in the article finds that eight in ten Americans say gas prices are straining their budgets, and 63% say they blame Trump 'a great deal' or 'a good amount' for higher prices, including more than six in ten independents and nearly one-third of Republicans.
4:34 PM
Trump proposes gas tax holiday, but savings may be limited
New information:
- On Monday, May 11, 2026, CBS published a follow-up piece quantifying the impact of Trump's proposed federal gas tax suspension, noting that waiving the 18.4-cent gasoline tax and 24.4-cent diesel tax would cut current average prices only to about $4.34 and $5.39 per gallon, respectively.
- The article reports that since the U.S. and Israel attacked Iran in late February 2026, average U.S. gasoline prices have risen about $1.54 per gallon to $4.52 as of May 11, 2026.
- Tax analyst Andrew Lautz of the Bipartisan Policy Center estimated that a typical sedan would save up to about $2 per fill-up under a federal gas tax holiday, while an SUV driver in California might save roughly $2.36–$3.09 per tank, still paying about $24–$32 more than before the Iran war.
- GasBuddy analyst Patrick De Haan estimated that suspending the federal gas tax would cost the Highway Trust Fund approximately $2.1 billion per month in lost revenue.
- The piece notes that some states, including Georgia, Indiana and Utah, have already suspended state-level fuel taxes, and that those state taxes, which can range from about 15 to 60 cents per gallon, can provide larger per-gallon relief than the federal levy.
3:54 PM
Trump says he aims to temporarily suspend federal gas tax
New information:
- In a phone interview aired by CBS News on Monday, May 11, 2026, President Trump said he 'aims to suspend the federal gas tax amid surging gas prices.'
- The CBS hit is a direct, on-camera/recorded reiteration of Trump's intent, framed specifically as a response to 'surging gas prices,' reinforcing that the proposal is active and tied to current price levels rather than a vague long-term idea.
2:58 PM
Trump says he will suspend gas tax
New information:
- On Monday, May 11, 2026, President Trump told CBS News he intends to suspend the federal gasoline tax "for a period of time" and phase it back in once prices fall.
- Trump acknowledged that suspending the 18.4-cent gas tax and 24.4-cent diesel tax will require an act of Congress, which he said has shown little interest so far.
- He tied the move to prices that AAA says have risen more than 50% since the Iran war began on February 28, reaching over $4.52 per gallon on Sunday, May 10, 2026.
- Trump said Iran's latest written response to a U.S. peace proposal included nuclear concessions that he views as "not enough" and called it a "very stupid proposal."
- In the same interview, Trump criticized Israeli Prime Minister Benjamin Netanyahu's comment that "nobody had perfect foresight" on the Strait of Hormuz, insisting he knew Iran would close it and calling it "the only weapon they have."
- Trump said the U.S. could have reopened the Strait under Project Freedom and suggested the convoy-escort mission could resume in a "much more severe" form.