Trump floats federal gas tax relief last seen during the Great Depression

Erasing that tax temporarily could help metro Atlanta motorists, said Patrick De Haan, a petroleum analyst with GasBuddy.

But whether that happens is less clear.

Prices have surged since late February when the Iran war began, disrupting energy production and shipping through a critical oil export route known as the Strait of Hormuz.

The average price for regular unleaded gas in metro Atlanta was $4.08 per gallon as of Tuesday afternoon, according to AAA data. Average diesel prices were $5.13 per gallon.

“If everything held still, that would push you back below the $4 a gallon mark temporarily,” De Haan said of a possible pause on the federal gas tax. “But it’s too early to know if gas prices might be higher by the time this gets enacted.”

In fact, De Haan previously predicted gas prices could rise to $5 per gallon by June without a resolution to the war.

Georgia already benefits from a state gas tax suspension that Gov. Brian Kemp enacted in March. That has kept gas prices in metro Atlanta below the national average, which was about $4.50 for a gallon of unleaded Tuesday afternoon, according to AAA data.

But that exemption is set to expire next week. A spokesperson for Kemp didn’t immediately respond to a request from The Atlanta Journal-Constitution asking whether it may be extended.

Trump cannot pass a gas tax holiday on his own. Only Congress has the authority to pause it, and that’s rarely happened. The Washington Post reported that only in 1934 did Congress manage to shave a half cent off the gas tax when Prohibition ended.

Then-President Joe Biden tried to suspend the gas tax in 2022 following Russia’s invasion of Ukraine, but the measure failed to gain support in Congress.

Yet, Republican lawmakers were quick to respond to Trump’s comments this week. U.S. Sen. Josh Hawley, R-Mo., said on social media on Monday he would introduce legislation, as did U.S. Rep. Anna Paulina Luna, R-Fla.

“American families need this relief on gas prices,” Luna said on social media platform X.

Still, Trump is facing pushback, including by leaders of his own party, with Senate Majority Leader John Thune telling reporters Tuesday that he has opposed prior attempts to pause the gas tax, according to CNBC.

Thune questioned whether the tax savings would get passed on to consumers, “or does it get sucked up in the supply chain somewhere?” he said, according to CNBC. “I think those are all fair questions to ask, but it’s a conversation that I think we’re willing to have.”

Democratic U.S. Sens. Richard Blumenthal, D-Conn., and Mark Kelly, D-Ariz., in March also introduced a bill to temporarily suspend the federal gas tax through October, and a similar bill was filed in the House by Rep. Chris Pappas, D-N.H. But the legislation hasn’t advanced with Republicans in control of both chambers.

Now, Democrats are downplaying Trump’s call for similar relief. Senate Democratic Leader Chuck Schumer said on the Senate floor Tuesday that Trump’s proposal to suspend the gas tax is not enough.

“Offering Americans literal pennies on the dollar to cope with skyrocketing gas prices just won’t cut it,” Schumer said, calling on Republicans to instead vote for a resolution to withdraw American troops from Iran.

The federal gas tax funds the Highway Trust Fund, which pays for highway and transit projects, so suspending the tax would come at a cost. A five-month suspension would reduce gas tax revenue by about $17 billion, or 46% of the projected 2026 gas and diesel tax revenue to the Highway Trust Fund, according to the Bipartisan Policy Center.

“Without replacement funds, fuel tax revenues supporting critical investments in highway safety and infrastructure projects would evaporate, hindering the safe and efficient movement of people and goods across the country,” the American Trucking Associations, Truckload Carriers Association and National Tank Truck Carriers said in a statement.

By the numbers

What motorists typically pay in state of Georgia and federal fuel taxes per gallon. The state of Georgia’s fuel taxes were suspended in March. Figures are rounded.

Georgia tax

Gasoline: $0.33

Diesel: $0.37

Federal tax

Gasoline: $0.18

Diesel: $0.24

Sources: Georgia Department of Revenue and the U.S. Energy Information Administration.