Trump proposes pausing federal gas tax to curb prices amid Iran tensions

Trump floated suspending the federal gas tax (18.3¢/gal gasoline, 24.3¢/gal diesel) for an unspecified period to help lower pump prices as the Iran conflict drives costs higher; such a suspension would require congressional approval and would drain the Highway Trust Fund by about $17 billion over five months. The plan’s effectiveness is uncertain, since the tax is collected at refineries and gas prices depend on many factors, and lawmakers from both parties have proposed varying approaches to relief while the administration has already taken steps like releasing oil reserves to ease prices.