President Trump and U.S. lawmakers are considering suspending the 18.4-cent federal gas tax amid rising gasoline prices triggered by the war in Iran. The average gas price reached $3.99 per gallon on March 30, up from $2.98 just one month earlier.
Trump acknowledged the possibility during recent remarks, stating the tax suspension remains "something we have in our pocket if we think it's necessary." A pair of Democratic senators introduced legislation calling for suspension until October 1.
The federal gas tax has remained unchanged since 1993 when Congress set the rate at 18.4 cents per gallon. Revenue funds the Highway Trust Fund for road and transit construction projects.
Georgia became the first state to implement a temporary gas tax suspension. The state previously charged 33 cents per gallon in addition to the federal tax. Other states including Utah, Florida, Connecticut, and Pennsylvania are evaluating similar measures as their residents face fuel costs ranging from $3.94 to $4.20 per gallon.