All articles tagged with #gas tax
Oregon voters rejected Measure 120, leaving lawmakers with the task of crafting a long-term funding plan for roads, bridges and transit by 2027. With the gas-tax hike off the table, the Legislature faces pressure to identify new revenue options to maintain and improve the state’s transportation network and fund future projects.
Oregon voters rejected Measure 120, a transportation funding package that would have raised the gas tax, elevated vehicle fees and temporarily increased payroll taxes to boost funding for roads, bridges, and transit. With about 83% voting against and 17% in support, the defeat means no immediate changes to current taxes, but officials warn a long-term funding gap remains, likely keeping transportation funding on the agenda for the 2027 session.
Oregonians voted to block a measure that would have doubled many vehicle-registration and title fees, raised the gas tax from 40 to 46 cents, and doubled the payroll tax for public transit, a proposal that failed by about four-to-one and would have funded road and bridge maintenance across the state, with rural areas and counties losing potential funding; the outcome leaves lawmakers pursuing a sustainable transportation plan via a governor-led workgroup that will issue recommendations by year’s end ahead of the 2027 session.
Trucking and construction trade groups oppose a proposed temporary pause on the 18.4-cent federal gas tax (and the 24.4-cent diesel tax), arguing it would drain the Highway Trust Fund and undermine highway and transit funding even as gas prices rise amid the Iran conflict; the idea has mixed support in Congress, with a three-month pause potentially adding billions to the deficit if no offset revenue is found.
Trump proposes a temporary suspension of the federal gas tax to ease higher pump prices driven by the Iran war; it would require Congressional approval and could reduce Highway Trust Fund revenue by about $17 billion over five months, with uncertain relief for consumers and mixed bipartisan reactions as lawmakers weigh feasibility and budget impacts.
Trump floated a temporary suspension of the federal gas tax to ease prices, but Congress and the White House remain split. Senate leaders signaled hesitation due to revenue loss that could hit the Highway Trust Fund, and critics argue any relief would be modest relative to price shocks from global events. A hypothetical waiver could cost about $14 billion for a May–November window, and while several 2028 contenders have endorsed similar ideas, it remains unclear whether the plan will gain political traction or fade as campaigning continues.
A proposed temporary suspension of the federal gasoline tax (18.4 cents per gallon) would likely trim pump prices only modestly, with regular gas dipping to about $4.34/gal and diesel to $5.39/gal, since recent price hikes have outpaced the levy. It would require congressional action and would reduce Highway Trust Fund revenue (roughly $2.1 billion per month), while state tax waivers may offer more meaningful relief; experts warn the policy could have unintended market effects and limited impact on overall prices.
With California’s drivers paying among the highest prices in the nation, Gov. Gavin Newsom faces growing pressure to suspend the state’s 61-cent gas tax even as President Trump advocates a temporary federal gas‑tax pause. Supporters say relief is needed, but Newsom and others warn that a federal pause would not fix underlying costs or fund road repairs, and state lawmakers have shown little appetite to suspend the state tax. Any federal action would require Congress, complicating the relief effort.
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.
With U.S. gas prices climbing toward $5 a gallon, Trump has floated suspending the 18-cent federal gas tax—a move that would require Congress. NBC News’s analysis shows that even a complete pause on all state and federal taxes would leave prices about 35% higher than they were at the war’s start. The average driver pays roughly 51 cents per gallon in taxes and fees, of which 18 cents go to the federal government; Georgia has already paused its own tax, and a broader pause would affect highway and transit funding via the Highway Trust Fund.
President Trump called Iran’s ceasefire proposal “life support” after rejecting its latest terms and proposed suspending the federal gas tax to help with rising fuel prices as the Strait of Hormuz remains closed; Pakistan is mediating a path to peace, but the two sides are far apart on nuclear concessions, sanctions relief and Hormuz control, leaving the risk of broader conflict and continued energy-market volatility.
President Trump told CBS News he plans to suspend the federal gas tax for a period of time, a move that would require congressional action and would cost about $0.5 billion per week; Democrats have introduced bills to pause or lower the tax as gas prices rise amid Iran-related supply concerns, with revenue from the tax funding the Highway Trust Fund for roads and transit.
Energy Secretary Chris Wright said the Trump administration is open to suspending the 18.3-cent federal gasoline tax to ease elevated pump prices tied to Middle East tensions; any move would require Congress and involve tradeoffs, with estimates suggesting a suspension could shave 10–16 cents per gallon, while other relief measures have limited impact on a supply shock from Iran-related disruption.
Oregon Democrats’ plan to raise the state gas tax to fund road improvements goes to voters, arriving amid climbing gasoline prices and ongoing debate over transportation funding.
California Gov. Gavin Newsom rejected calls for a temporary gas-tax suspension as pump prices hit record levels, arguing that the baseline costs haven’t changed while blaming Donald Trump for higher costs tied to Iran-related tensions. At a state Capitol hearing, economists noted that California’s gas taxes, environmental mandates and regulatory costs help push prices above the national average, even as some urged temporary relief or tax adjustments tied to crude-price spikes. Critics warn that refinery shutdowns and growing reliance on imported crude could drive prices higher, all while California pursues a 2045 energy transition.