Trump Backs Federal Gasoline Tax Suspension Amid Price Surge
President Trump has endorsed suspending the federal gasoline tax to address surging fuel prices.
Why it matters: Trump's reversal signals a major policy shift with broad implications for energy law, regulatory strategy, and compliance teams advising on taxation, infrastructure, and sectoral legal disputes. Legal professionals must assess the impact as Congress faces mounting pressure to act.
- President Trump publicly announced support for suspending the federal gasoline tax on May 11, 2026.
- The federal gasoline tax stands at 18.4 cents per gallon; diesel is taxed at 24.4 cents per gallon.
- Suspending the tax requires Congressional approval—presidential action alone is insufficient.
- National average gas prices have risen to $4.52 per gallon, mainly due to Middle East tensions blocking the Strait of Hormuz.
President Donald Trump broke with earlier policy by publicly endorsing a suspension of the federal gasoline tax on May 11, 2026. The move comes as U.S. consumers face fuel prices averaging $4.52 per gallon, up sharply from pre-war levels just under $3 per gallon, amid continued conflict with Iran that has disrupted global oil flows through the Strait of Hormuz.
- Trump stated: "We're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in."
- The federal gasoline tax is set at 18.4 cents per gallon, while diesel carries a 24.4 cent tax. Annual revenue from federal fuel taxes exceeds $23 billion, largely supporting the Highway Trust Fund.
- The administration's policy change follows mounting political and public pressure to cushion the economic impact of rising energy costs. Energy Secretary Chris Wright affirmed, "We are open to all ideas to lower prices for American consumers and American businesses."
- Legal teams should note that while the President's support intensifies debate, actual suspension would require legislative action—Trump cannot enact this policy unilaterally, as outlined by reporting from AP.
For counsel advising energy sector, infrastructure, or compliance clients, this policy shift underscores the volatility of regulatory frameworks and the importance of monitoring Congressional maneuvers closely. It also tests the legal architecture behind tax authorities and the politics of infrastructure funding.
By the numbers:
- 18.4 cents/gallon — Current federal gasoline tax
- $4.52/gallon — Average U.S. gas price as of May 11, 2026
- $23B+ — Estimated annual federal fuel tax revenues
Yes, but: The President cannot unilaterally suspend the federal gas tax—Congressional approval is necessary, and impacts on infrastructure funding remain uncertain.
What's next: Congress now faces pressure to consider legislation on suspending the federal gas tax amid ongoing legal and political debate.