Republicans split on suspending federal gas tax despite Trump backing

House Speaker Mike Johnson (R-LA) called a temporary pause an “intriguing idea,” but told reporters that he wasn’t ready to confirm it would come to the House floor for a vote. 

“I mean, you have to look at any unintended consequences and evaluate all that,” Johnson said. “So I’m not yet ready to project it, but I certainly find it to be an intriguing idea.”

Senate Majority Leader John Thune (R-SD) told reporters that anytime the gas tax is paused, a “big hole” is left in the Highway Trust Fund, which finances improvements to road and transit projects.

The Committee for a Responsible Federal Budget projected in March that suspending the gas tax for one month would cost the federal government $3.5 billion, while a six-month pause would cost about $21 billion if there are no offsets.

“I’ve not in the past, obviously, been a fan of that idea,” Thune said. “But I know I’ve got some colleagues out there who think it’s a good idea, and so we’ll hear them out. I think right now, the best thing that can happen for gas prices is for the strait to get opened up again, the shipping lanes get opened up again. That’ll normalize gas prices as much as anything.”

Sen. Mike Rounds (R-SD), meanwhile, said Congress should be focusing on energy production instead, particularly approving the year-round sale of the ethanol-blended gasoline known as E-15. 

Rounds argued that expanding access to E-15 could save “anywhere from 15 to 30 cents a gallon.” The South Dakota Republican also urged Congress to eliminate the requirement to switch between winter and summer gasoline blends.

Federal excise taxes are 18.4 cents per gallon on gas and 24.4 cents per gallon on diesel, according to the U.S. Energy Information Administration.

Sen. John Hoeven (R-ND), while saying he would look at a short-term expansion, said the “real key” to lowering gas prices would be reopening the Strait of Hormuz. 

“That’s what’s going to bring prices down,” Hoeven said.

Following Trump’s backing of a gas tax holiday, Sen. Josh Hawley (R-MO) and Rep. Anna Paulina Luna (R-FL) pledged to introduce legislation to suspend the excise taxes.

Hawley’s bill, titled the Gas Tax Suspension Act, would suspend federal gasoline and diesel taxes for 90 days. It would also give Trump the option to extend the suspension for another 90 days if needed.

“What better way to make gas more affordable?” Hawley told reporters Tuesday. “Diesel too. I can’t emphasize enough. Diesel is vital to farmers. We should do holidays for both.”

Democrats have similarly pushed for a temporary pause to the federal gas tax. Sens. Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) and Rep. Chris Pappas (D-NH) introduced legislation in March to suspend the gas tax until October to provide voters relief.

“Arizona families shouldn’t pay the price for Donald Trump’s bad decisions,” Kelly said in a statement announcing the bill. “Suspending the federal gas tax would help bring prices down and give families some much needed relief.”

Gas prices have soared since the start of the Iran war due to the closure of the Strait of Hormuz, reaching a national average of $4.55 last week, according to AAA. The price is the highest it has been since 2022, when the national average jumped to $5.01 per gallon.

Johnson conceded earlier Tuesday that the spike in gas prices was a “concern for everybody.” 

“But I’m confident we’ll be able to bring those prices down as soon as we get the Strait of Hormuz straightened out,” Johnson said. “And we’re bullish about that.”