Treasury Secretary Scott Bessent on Thursday called on Congress to suspend the federal gas tax, pressing lawmakers to deliver direct relief to American drivers still absorbing a massive price spike tied to the ongoing U.S.-Israeli war with Iran.
Bessent issued the appeal as gas prices remain roughly 50 percent higher than they were before hostilities began, reports indicate. The federal gas tax currently stands at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel. A suspension would not make up the full gap created by the war, but supporters say it would provide immediate, tangible savings at the pump.
“U.S. consumers are dealing with higher fuel prices,” Bessent said Thursday, urging Congress to move on the measure.
President Trump first publicly called for a gas tax holiday in May, making clear the White House views relief at the pump as a priority ahead of the 2026 midterm elections. “Till it’s appropriate,” Trump told reporters at the White House when asked how long the suspension would last.
Congress would have to act legislatively for any suspension to take effect. The Bipartisan Policy Center has estimated that pausing the tax from May through September 2026 would reduce Highway Trust Fund revenue by roughly $17 billion.
Sen. Josh Hawley (R-MO) moved quickly after Trump’s announcement, introducing legislation to formally suspend the tax. “President Trump has proposed to suspend the federal gas tax and he’s exactly right,” Hawley said in a statement.
Bessent’s Thursday appeal came a day after he testified before the Senate Finance Committee on the administration’s fiscal year 2027 budget request. In that appearance, he defended the administration’s economic record, noting that 62 million tax returns claimed at least one of the new tax cuts enacted this year, including the no-tax-on-tips and no-tax-on-overtime provisions. Average refunds increased by more than 11 percent this filing season, and total refunds rose 18 percent, he told the committee.
Gas prices have emerged as one of the most visible economic pressures on American households since U.S. and Israeli forces launched military operations against Iran. The Strait of Hormuz, a critical chokepoint for global oil shipments, has been a point of concern throughout the conflict, with disruptions to regional energy flows helping sustain elevated prices at the pump.
The Senate is currently deep in a vote-a-rama on the administration’s major immigration and spending legislation. The gas tax push adds another moving piece to an already packed legislative calendar in Washington.
No timeline has been set for a floor vote on the gas tax suspension. Hawley’s bill has yet to receive a hearing in the Finance Committee, though Thursday’s push from Bessent signals the White House is keeping the pressure on.
