Trump's proposed gas tax holiday unlikely to offset high costs, experts say

Source: Scripps News

Posted 5:20 PM, May 11, 2026


As the Iran war continues to force oil and gas prices to record highs, President Donald Trump on Monday voiced support for a temporary holiday on the federal gas tax to help ease consumers’ costs at the pump.

Speaking to reporters in the Oval Office, Trump proposed pausing the federal excise tax on gasoline, currently set at 18.4 cents per gallon, “until it’s appropriate.” The president went on to acknowledge such a move would have a limited impact, though he argued it would still benefit Americans. “It's a small percentage, but it's still money,” Trump said.

Any change in the gas tax would require Congressional approval, as the legislative branch has authority over tax policy. And though some lawmakers on both sides of the aisle have voiced support for a gas tax holiday, Congressional leaders have thus far thrown cold water on the idea. Moreover, a pause on gas tax collection is likely to have limited impacts for consumers but significant impacts on federal budgets, experts tell Scripps News.

They say there are only two ways to bring down gas costs significantly: lower demand, something unlikely to occur ahead of the summer travel season, or boost supply. “There are a variety of ways to nibble around the edges, but addressing the root problem here is really a foreign policy question,” Carl Davis, research director at the Institute on Taxation and Economic Policy, told Scripps News. “There is no quick fix — you can't slap a band-aid on this problem, as tempting as it is.”

Read more: https://www.scrippsnews.com/politics/the-president/trumps-proposed-gas-tax-holiday-unlikely-to-offset-high-costs-experts-say