Trump confirms gas tax suspension push as prices hit $4.52

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(The Center Square) – U.S. Sen. Josh Hawley, R-Mo., introduced legislation Monday to suspend the federal gas tax, putting specific legislative language behind a proposal President Donald Trump endorsed earlier in the day.

Hawley's Gas Tax Suspension Act would pause the 18.4-cents-per-gallon tax on gasoline and the 24.4-cents-per-gallon tax on diesel for 90 days, with an option for the president to extend the suspension another 90 days if economic conditions warrant.

"President Trump has proposed to suspend the federal gas tax and he's exactly right," Hawley said. "American workers and families deserve immediate relief and this legislation will do just that."

Rep. Anna Paulina Luna, R-Fla., also announced plans to introduce companion legislation in the House, saying her office would work "directly with President Trump to ensure we deliver this win for the American people." No House bill had been filed as of publication time.

The national gas price average hit $4.52 a gallon Monday, according to AAA — up more than 50% since the U.S.-Iran conflict began Feb. 28 and more than $1.38 from a year ago. Diesel nationally is averaging nearly $5.70 per gallon. In Missouri, regular gasoline is averaging over $4 per gallon, up 47% from a year ago, with diesel topping $5.20, a 65% year-over-year increase.

Iran's continued blockade of the Strait of Hormuz, the waterway that carries about 20% of the world's oil and natural gas, has kept upward pressure on prices.

Suspending the tax requires an act of Congress and would cost the federal government about $500 million a week, according to the administration. That revenue feeds the Highway Trust Fund, which finances construction and repair of the nation's roads, bridges and transit systems.

The Committee for a Responsible Federal Budget, a nonpartisan think tank, warned in March that a suspension would speed up the fund's insolvency while providing only marginal relief to consumers. The 18.4-cent suspension would offset less than half of last month's price increase alone.

Democratic lawmakers introduced legislation in March to suspend the gas tax through October. Canada suspended its roughly 28-cent federal gas tax April 20 at a cost of about $1.74 billion (U.S.).

Trump said Monday the Iran conflict remains unresolved, calling the current ceasefire "on massive life support" after rejecting Tehran's latest peace proposal as "a stupid proposal, actually, done by people that have no clue as to the danger they're in."

Trump did not specify a price threshold for the phase-back beyond saying the tax would return "when gas goes down."