Ohio gubernatorial candidates Vivek Ramaswamy and Amy Acton have both called for a 90-day suspension of the state’s motor fuel taxes to ease financial pressure on drivers, sparking a sharp debate over highway funding. The proposed holiday would pause Ohio’s 38.5-cent tax on gasoline and 47-cent tax on diesel. While both campaigns want relief at the pump, outgoing Republican Governor Mike DeWine and legislative leaders disagree strongly on how to backfill an estimated $640 million to $750 million in lost transportation revenue ahead of a special legislative session set for September 30.
Ramaswamy Proposes ODOT Surplus and Medicaid Fraud Recovery
Republican nominee Vivek Ramaswamy’s proposal relies on tapping ending cash balances at the Ohio Department of Transportation (ODOT), followed by the state’s general revenue and rainy-day funds if necessary. Ramaswamy has also suggested that shortfalls could be covered by recovering money through a deal with the federal government regarding Medicaid fraud return funds. House Speaker Matt Huffman estimated the 90-day suspension will cost between $640 million and $700 million, while Governor DeWine placed the figure closer to $750 million.
Governor DeWine sharply criticized the plan to use transportation funds during an appearance in Dublin, calling it a “very, very bad idea” that would drain money already committed to infrastructure. “All the money that is there is already to do things that people have asked to be done,” DeWine said, warning that the next governor would face a fiscal crisis. DeWine noted that the withdrawal would affect not only state highways but also funding distributed to townships, villages, cities, and counties.
Acton Calls for Relief Without Specific Funding Plan
Democratic candidate Amy Acton proposed a gas tax suspension hours before Ramaswamy, but she did not initially offer specifics on how to replace the lost revenue. Responding to Ramaswamy’s proposal, Acton told reporters that “there’s parts of it that don’t make any sense to me.” Regarding the idea of utilizing Medicaid fraud recoveries to backfill the gas tax, Acton argued that those funds should instead be reinvested into healthcare for Ohioans.
Meanwhile, House Minority Leader Dani Isaacsohn proposed an alternative funding source. Isaacsohn suggested drawing from $600 million in unclaimed funds that the General Assembly previously allocated to Cleveland Browns owners Jimmy and Dee Haslam for a new domed stadium in Brook Park, a funding mechanism currently facing legal challenges in court.
Legislative Timeline and Outlook
The Ohio General Assembly is scheduled to return from summer recess early to introduce and vote on the gas tax holiday legislation on September 30. Governor DeWine stated that while he understands why drivers need relief, he wants to review the final bill before deciding whether to sign it.
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