All articles tagged with #gas tax holiday
President Trump’s proposal to suspend the federal gasoline tax is drawing attention on Capitol Hill but faces early GOP skepticism and concerns about funding the Highway Trust Fund; Hawley has introduced a 90-day halt, while others seek offsets or general-fund replacements, highlighting budget deficits as lawmakers weigh pump-relief against long-term financing in a period of high gas prices.
President Trump endorses suspending the federal gas tax, with Senate Majority Leader John Thune saying he’ll “hear them out” though he remains skeptical about price relief and notes potential highway-funding impacts. GOP lawmakers in both chambers are introducing legislation as oil supply concerns from the Strait of Hormuz drive debate. Democrats urge real relief but argue 18 cents per gallon is not a large fix. The updates also cover the House Ethics Committee’s defense of its Mills investigation and broader Capitol Hill priorities, including funding talks, a spending blueprint, and housing-CBDC debates, alongside Virginia redistricting decisions affecting the GOP agenda.
Amid rising pump prices driven by the Iran war and a tighter global energy market, governors from both parties are largely avoiding gas tax holidays, noting that past attempts in 2022 provided little relief and that state budgets are stretched. Economists say suspending gas taxes would likely deliver minimal savings and could strain transportation funding, making federal action the more plausible lever, even as political calculations differ by state.
As gas prices spike amid Middle East tensions, states are reluctant to repeat gas-tax holidays seen in 2022. Only Connecticut has pitched a short-term, one-month suspension; New York and Georgia have given lukewarm responses. Savings from such holidays typically don’t reach drivers in full, and budget shortfalls plus ongoing supply constraints—exacerbated by the Strait of Hormuz disruption—make broad relief unlikely this year.