ECONOMY

Administration Considers Temporary Suspension of Federal Gas Tax

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Washington — This week the administration said it supports pausing the federal gas tax temporarily to provide relief at the pump, with the energy secretary making the comment on Sunday and President Trump repeating the intent in a Monday CBS interview; officials cited national averages near $4.52 per gallon and noted legal constraints. The proposal would suspend the 18.4-cent-per-gallon gasoline excise and the 24.4-cent diesel excise, measures that currently fund the Highway Trust Fund, and would require an act of Congress to implement; analysts and reporters note the savings per gallon would be modest while estimated federal revenue losses could reach about $500 million weekly, and lawmakers have introduced related bills this week.

Prepared by Christopher Adams and reviewed by editorial team.

Aggregated From:

The Philadelphia Inquirer WBRZ

Timeline of Events

Feb. 28 — War involving Iran begins, contributing to higher crude and pump prices.
Weekend prior to Monday — AAA reports national gas average near $4.52 per gallon.
Sunday — Energy secretary states administration openness to pausing the federal gas tax on Meet the Press.
Monday — President announces intention to suspend the federal gas tax in a CBS interview.
After Monday — Lawmakers introduce bills and analysts estimate the pause would cost roughly $500 million weekly and require Congressional action.

Why This Matters to You

If the federal gas tax gets paused, you'll save a bit at the pump. But don't expect a huge drop. The savings would be around 18.4 cents per gallon of gas, and 24.4 cents for diesel. It's a small relief, but every penny counts when gas prices are high.

The Bottom Line

Suspending the federal gas tax will require Congress to act and could cost the government about $500 million weekly. This money usually goes to the Highway Trust Fund. So, keep an eye on how this plays out. Worth forwarding if you know someone feeling the pinch at the pump.