WASHINGTON — On Monday, President Trump proposed a temporary halt to the federal gas tax as a means to alleviate the financial burden on Americans at the gas pump, following the escalation of oil prices linked to the tensions in the Strait of Hormuz.
“I think it’s a great idea,” Trump shared with CBS News during a brief phone conversation. “Yes, we’re planning to remove the gas tax for a while, and once gas prices decrease, we’ll gradually reinstate it.”
Since the 1990s, gasoline has been subject to an 18.4 cents per gallon tax, which contributes up to $40 billion each year to the Highway Trust Fund. This fund is essential for financing road construction and maintenance, among other infrastructure projects.
The proposal to temporarily eliminate the federal gas tax will likely need the backing of Congress. Senator Josh Hawley (R-Mo.) took to social media, declaring his intent to introduce a bill to that effect once Congress resumes session later today.
