Federal Gas Tax Suspension Proposals: Legislative Updates and Economic Impacts

As of June 7, 2026, Republican lawmakers are advancing legislative proposals to temporarily suspend the federal excise tax on gasoline and diesel fuel in response to elevated fuel prices. President Donald Trump has publicly supported these initiatives, which aim to provide immediate relief to consumers by eliminating the 18.4-cents-per-gallon tax on gasoline and the 24.4-cents-per-gallon tax on diesel.

What are the current legislative proposals?

Legislative efforts to pause federal fuel taxes have emerged in both chambers of Congress. On May 11, 2026, Senator Josh Hawley (R-MO) introduced the Gas Tax Suspension Act, S. 4485, according to Thomson Reuters Checkpoint News. This bill seeks to reduce the federal tax rate on non-aviation gasoline and diesel fuel to zero for a minimum of 90 days. The legislation also grants the president the authority to extend this suspension for an additional 90 days should economic conditions warrant further intervention.

In the House of Representatives, Representative Jeff Van Drew (R-NJ) has introduced a separate proposal that calls for a more extended relief period. Unlike the Senate bill, the House measure proposes an 18-month suspension of federal fuel taxes, including those applied to aviation gasoline, followed by a gradual phase-in period to restore the taxes, as reported by Thomson Reuters Checkpoint News.

Why are lawmakers proposing these suspensions?

The push for a gas tax holiday is driven by the rising cost of fuel across the United States. Senator Hawley cited national average prices for regular gasoline exceeding $4.50 per gallon and diesel fuel nearing $5.70 per gallon as the primary justification for his legislative action. President Trump has voiced his support for these measures, noting that a suspension of the federal gas tax is an appropriate response to current market conditions.

What are the implications for the Highway Trust Fund?

Suspending federal fuel taxes carries significant implications for national infrastructure funding. The Bipartisan Policy Center has estimated that a suspension of the federal gas tax from May 2026 through September 2026 would reduce federal revenue by $17 billion, according to data cited by Congress.gov. These taxes typically serve as the primary revenue source for the Highway Trust Fund, which finances federal highway and public transit projects. While proponents argue the move provides necessary cost-of-living relief, the resulting reduction in revenue necessitates a debate regarding how to maintain infrastructure funding levels during the suspension period.

Key Differences in Proposed Legislation

• Scope: Senator Hawley’s bill (S. 4485) focuses on non-aviation gasoline and diesel, while Representative Van Drew’s proposal includes aviation gasoline.
• Duration: The Senate proposal suggests an initial 90-day window with an optional 90-day extension, whereas the House proposal seeks an 18-month duration followed by a phased reinstatement.
• Implementation: Representative Van Drew has also encouraged individual states to evaluate the potential for suspending their own state-level fuel taxes to provide supplemental relief to drivers.

As these proposals move through the legislative process, the debate remains centered on balancing immediate consumer relief against the long-term financial stability of the nation’s transportation infrastructure.