Federal gas tax holiday bills, temporarily suspending 18.4 cents per gallon fee
“The CEO of Starbucks defended their new $9 cup of premium coffee,” comedian Hari Kondabolu quipped on NPR’s Wait, Wait… Don’t Tell Me!, “saying it’s cheaper than gas.”
What the bills do
Several recent bills in Congress would temporarily suspend the 18.4 cents per gallon federal gas tax, including:
The Gas Prices Relief Act would suspend it until October 1. Introduced in mid-March by Rep. Chris Pappas (D-NH1) in the House and Sen. Mark Kelly (D-AZ) in the Senate.
Another bill also called the Gas Prices Relief Act would suspend it until January 1. Introduced on April 29 by Rep. Josh Harder (D-CA9).
The Gas Price Relief Act – with the word ‘relief’ singular instead of plural – would suspend it for as long as gas costs $4.00 per gallon or higher. Introduced on April 30 by Rep. Brendan Boyle (D-PA2).
The Gas Tax Relief Act would suspend it for 90 days after the bill’s potential enactment. Introduced on May 12 by Rep. Nicole Malliotakis (R-NY11).
The Gas Tax Suspension Act would also suspend the federal gas tax for 90 days after its potential enactment. Introduced on May 11 by Sen. Josh Hawley (R-MO).
The American Families Gas Tax Relief Act would suspend it for 120 days after the bill’s potential enactment. Introduced on May 13 by Rep. Anna Paulina Luna (R-FL13).
The Diesel Prices Relief Act would specifically pause the federal diesel gas tax, currently 24.4 cents per gallon, until January 1. Introduced on May 12 by Rep. Eugene Vindman (D-VA7).
Context: in the news
After the U.S. military attacked Iran, the Middle Eastern country retaliated by closing the Strait of Hormuz, through which about 20% of the world’s oil supply flows. As a result, prices at the pump have soared since March, currently averaging $4.53 per gallon for regular gas.
For comparison, the record high was $5.01, set in June 2022 in the aftermath of Russia’s invasion of Ukraine. Some believe prices could overtake that record later this summer.
Context: what’s the federal gas tax?
The federal gas tax was instituted in 1932, intended as a temporary Great Depression-era measure to ease the budget deficit. In 1941, though, the tax was made permanent.
While the rate was raised several times over the years, it’s remained at 18.4 cents per gallon since 1993, despite inflation. Average prices now are more than double what they were back then; 18.4 cents per gallon in 1993 would be worth approximately 41 cents per gallon today.
Context: in the recent past
Whenever prices get high, politicians on both sides of the aisle have proposed temporarily suspending the federal gas tax, often nicknamed a “gas tax holiday” – though it’s never actually happened.
In 2008, Republican nominee Sen. John McCain (R-AZ) and Democratic nominee runner-up Sen. Hillary Clinton (D-NY) both proposed it. However, that November’s presidential election winner Barack Obama opposed it, arguing that oil companies would pocket most of the tax cut for themselves.
In 2022, during the record high gas prices, President Joe Biden proposed a gas tax holiday. However, Congress never voted for the proposal. Some Democrats opposed it for the same reason as Obama, while Republicans said the better way to decrease prices was to ramp up domestic energy production, which they accused Biden of hamstringing.
Now, President Donald Trump is proposing it too, saying at a White House event that he wanted the federal gas tax suspended “until it’s appropriate.”
What supporters say
The various bills’ supporters argue that their legislation would provide a much-needed cut at the gas station for American customers. Here’s what one congressional Republican and one Democrat each had to say.
“I know that a lot of people are directly being impacted by what’s happening with Iran right now. But President Trump has been very clear that once that’s done and finished, and he’s able to successfully complete that mission, you’ll see a massive drop in these gas prices,” Rep. Luna, a Republican, said on Fox News’ The Sunday Briefing. “So until then, we have the power of the purse and we’re going to be exercising that.”
“As Granite Staters continue to grapple with high costs on groceries, housing, and health care thanks to this administration, the last thing they need is to pay even higher prices at the gas pump as a result of Donald Trump’s war in Iran,” Rep. Pappas, a Democrat, said in a separate press release. “That is why I’m introducing legislation in the House to… provide Americans with badly-needed relief from the historic increase in gas prices we have seen.”
What opponents say
Opponents make several counterarguments, including:
There are better ways to lower gas prices, such as by releasing oil from the Strategic Petroleum Reserve to combat supply shortages.
The budget for transportation infrastructure would take a corresponding hit, such as paving roads and maintaining bridges. “A gas tax holiday is a good way to blow a hole in the collection of revenue for funding highway and transit repairs,” Brian Turmail, national spokesman for the Associated General Contractors of America, told CNBC.
Many Democrats say President Donald Trump shouldn’t have attacked Iran in the first place, causing this whole problem. (Especially because Iran’s new leader, the son of the leader killed in the initial attack, might be worse than his father.)
What happens next
Congress has never enacted a federal gas tax holiday before – not even when it was proposed in 2008, 2022, or (at least so far) in 2026. None of the various bills have yet received a committee vote.
President Trump’s support could induce more Republicans to sign on, in theory. Yet so far, the three aforementioned bills with a Republican lead sponsor have attracted zero, one, and two cosponsors so far.