We're going to take off the gas tax for a period of time
As the Strait of Hormuz blockade stretches into its third month, President Trump has reached for one of the oldest levers of economic relief — the tax pause — proposing to suspend federal fuel taxes as gasoline surpasses four and a half dollars a gallon nationwide. The gesture is familiar in its logic: reduce the visible cost of a necessary thing and absorb the pain elsewhere, at least for a time. Whether Congress will act swiftly enough to matter, and what the long-term cost to the nation's roads and bridges will be, are questions that linger beneath the headline.
- Gasoline prices have surged more than fifty percent since Iran closed the Strait of Hormuz on February 28, pushing the national average above $4.52 a gallon and squeezing households and industries alike.
- Trump's proposed suspension of the 18.4¢ gas and 24.4¢ diesel federal excise taxes would drain roughly $500 million per week from the Highway Trust Fund, the lifeblood of American road and transit infrastructure.
- Congressional action is required, but the political machinery is already turning — Republican Senator Josh Hawley and Representative Anna Paulina Luna both announced legislation within hours of Trump's remarks, with Democrats already drafting parallel proposals.
- Airline passengers face a separate reckoning: jet fuel costs have more than doubled since the war began, and analysts expect those costs to land on ticket prices this summer even as Trump ruled out a formal airline bailout.
- On the diplomatic front, Trump called Iran's latest peace proposal 'totally unacceptable,' hinted at reviving or escalating naval operations in the strait, and acknowledged only marginal movement on Iran's nuclear posture — leaving the underlying crisis unresolved.
President Trump announced Monday that he intends to suspend federal gas taxes temporarily, framing it as a straightforward relief measure while fuel prices continue climbing in the wake of Iran's blockade of the Strait of Hormuz. Speaking to CBS News, he described the plan simply: remove the tax for a period, then phase it back in once prices ease.
The backdrop is severe. Since Iran closed the strait on February 28, gasoline prices have risen more than fifty percent, with the national average crossing $4.52 per gallon by Sunday. The taxes Trump wants to pause — 18.4 cents per gallon on gasoline and 24.4 cents on diesel — may seem modest in isolation, but suspending them would cost the federal government roughly half a billion dollars each week in lost Highway Trust Fund revenue, raising real questions about infrastructure funding at a moment of substantial need.
Congress must approve any such suspension, but momentum gathered quickly. Republican Senator Josh Hawley and Florida Representative Anna Paulina Luna both announced legislation within hours of Trump's remarks, while Democratic lawmakers had already begun drafting their own versions. The political will, at least initially, appears bipartisan.
Beyond the pump, the economic ripple extends to the skies. Jet fuel costs have more than doubled since the conflict began, and analysts expect airlines to pass those expenses to passengers through higher ticket prices this summer. Trump dismissed calls for an airline bailout, suggesting carriers were managing adequately.
In the same interview, Trump called Iran's latest peace proposal 'totally unacceptable,' claimed he had foreseen the strait closure before it happened, and left open the possibility of reviving or intensifying naval operations to reopen the waterway. He acknowledged some movement on Iran's nuclear posture in the proposal but said it fell far short of what any agreement would require — leaving the crisis, and the pressure on fuel prices, without a clear end in sight.
President Trump announced Monday morning that he intends to suspend the federal gas tax, at least temporarily, as fuel prices continue their sharp climb in the wake of Iran's blockade of the Strait of Hormuz. Speaking by phone to CBS News, he framed the move as straightforward: take off the tax for a period, then let it phase back in once prices fall. "I think it's a great idea," he said.
The numbers behind the proposal are stark. Since Iran closed the strait on February 28, gasoline prices have jumped more than fifty percent. By Sunday, the national average had climbed above four dollars and fifty cents per gallon, according to AAA. Analysts expect prices to remain elevated as long as the blockade holds. The federal excise taxes Trump wants to suspend are 18.4 cents per gallon on gasoline and 24.4 cents on diesel—modest per-gallon figures that add up quickly across the nation's fuel consumption. Suspending them would cost the federal government roughly half a billion dollars each week in foregone revenue.
There is a significant obstacle: Congress must approve any suspension of the gas tax. Yet the political machinery moved swiftly. Republican Senator Josh Hawley announced Monday that he would introduce legislation to suspend the tax. GOP Representative Anna Paulina Luna of Florida said she plans to introduce a House bill this week to do the same, citing Trump's remarks as the catalyst. Democratic lawmakers had already begun drafting their own proposals to pause or reduce the tax, so the ground was prepared.
The money from the federal gas tax flows into the Highway Trust Fund, which finances the construction and repair of roads across the country, along with other transit projects. A suspension would create a gap in that funding stream at a moment when infrastructure needs remain substantial. Trump, however, dismissed concerns about an airline bailout as fuel costs squeeze carriers. When asked about proposals to help the industry, he said no formal bailout plan had been presented to him and suggested the airlines were managing adequately. Yet analysts predict that ticket prices will rise this summer as jet fuel costs—which have more than doubled since the war began—get passed along to passengers.
In the same interview, Trump addressed Iran's latest peace proposal, calling it "totally unacceptable" and describing it as "a stupid proposal, actually." He claimed to have foreseen Iran's move to close the strait, disagreeing with Israeli Prime Minister Netanyahu's assertion that no one could have predicted such a step. Trump said he knew it was coming and that it represented Iran's only significant leverage. He hinted at the possibility of restarting Operation Freedom, a naval initiative aimed at keeping the strait open, or pursuing something "much more severe," though he left the decision unsettled. When pressed on whether Iran had made meaningful concessions on its nuclear program in the proposal, Trump acknowledged some movement but said it fell far short of what would be required.
Notable Quotes
I think it's a great idea. 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.— President Trump
The airlines are doing not badly.— President Trump, rejecting calls for an airline bailout
The Hearth Conversation Another angle on the story
Why does Trump think suspending the gas tax is the right move here, when it costs the government half a billion dollars a week?
He sees it as direct relief for people at the pump. The math is simple to him: prices are up fifty percent, people are hurting, remove the tax, prices drop. He's not focused on the infrastructure funding gap—that's Congress's problem to solve.
But doesn't that create a real problem? The Highway Trust Fund pays for roads. Where does that money come from if the tax disappears?
It does create a problem, yes. That's why Congress has to act. Some lawmakers will want to find alternative funding; others will just accept the hit. It's a political choice dressed up as an economic one.
He rejected an airline bailout but acknowledged jet fuel costs have doubled. Isn't that contradictory?
Not entirely. He's saying the airlines aren't in crisis yet, so a bailout is premature. But he knows ticket prices will rise. He's betting consumers will absorb that cost rather than the government writing checks to carriers.
What about his claim that he predicted Iran would close the strait?
He's asserting foresight he says Netanyahu lacked. Whether that's accurate or not, it's a way of saying he understands Iran's playbook and isn't surprised by their moves. It also sets up his hint about Operation Freedom—suggesting he has options if diplomacy fails.
The peace proposal he rejected—did Iran actually offer nuclear concessions?
According to Trump, yes, but not enough. He's signaling that Iran moved but not far enough to matter. It's a way of keeping the door closed while appearing to acknowledge their effort.