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Trump Proposes Federal Gas Tax Suspension as Prices Top $4.50

Trump Proposes Federal Gas Tax Suspension as Prices Top $4.50

President Trump proposed suspending the federal gas tax during a CBS News interview, a move that's gaining new urgency as the national average price per gallon climbs above $4.50. The 18-cent-per-gallon tax cut would offer some relief at the pump, but the White House's attention remains fixed on the stalled ceasefire with Iran.

Why the proposal is back on the table

The idea of a gas tax suspension was initially dismissed as unnecessary a few months ago, according to Reuters sources. But the situation has changed. The national average has surged more than 50% since the US-Iran war began, and the Strategic Petroleum Reserve (SPR) dropped 8.6 million barrels last week — the largest weekly drawdown on record. Those numbers have pushed the proposal back into serious discussion inside the administration.

The cost of the conflict

Americans have spent an additional $39.6 billion on fuel since the conflict started, according to a Brown University tracker. A recent Ipsos Consumer Tracker found that 56% of Americans now report higher gas spending over the past three months, up from just 24% in April 2025. The price spike is hitting household budgets hard, and the proposed tax cut would shave roughly 18 cents off each gallon — a small but tangible break.

Trump's stated priorities

Trump has made clear where his focus lies. He stated during the same CBS interview that he does not think about Americans' financial situation — only about preventing Iran from having a nuclear weapon. That comment underscores the tension between domestic economic pain and the administration's foreign policy goals. Ceasefire efforts between the US and Iran have stalled, and no breakthrough appears imminent.

The shrinking window for relief

Memorial Day is approaching, which traditionally marks the start of the summer driving season. That narrows the window for any relief to take effect before millions of Americans hit the road. Even if the gas tax suspension were approved quickly, the mechanics of implementation and any congressional action would take time. The stalled ceasefire leaves the underlying cause of high prices — the war — unresolved, meaning the proposal may only be a temporary patch on a deeper problem.

Whether Congress will take up the suspension before the holiday weekend, or whether renewed diplomatic efforts could shift the administration's focus, remains an open question.