Trucking Groups Oppose Trump's Gas Tax Suspension Plan

Georgia, Indiana, Utah and Kentucky have temporarily waived or lowered state gas taxes. (Bloomberg News)

Major trucking groups oppose President Donald Trump’s plan to suspend the federal gasoline tax to counter rising prices at the pump, as the cost of oil soars while the war with Iran drags on.

Late May 11, American Trucking Associations, Truckload Carriers Association and National Tank Truck Carriers released a statement detailing their position on such a proposal.

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“We understand and appreciate the desire to provide relief to Americans facing higher fuel costs. However, history shows that gas tax holidays deliver negligible benefit to consumers. Because the tax is collected at the wholesale level and not at the retail pump, most savings never reach the consumer," the statement said. "While the average motorist pays about $1.63 per week in federal fuel taxes, a suspension would translate into only about 30 cents in weekly savings.

“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.

“America’s highways are truckers’ shop floor. While trucks are only four percent of vehicles on the road, the trucking industry covers nearly half of all Highway Trust Fund revenue. We look forward to working with members of Congress on solutions that deliver meaningful relief to consumers while preserving the long-term integrity of our transportation system.”

Trump told reporters at the White House that he’ll seek to suspend the federal 18.4 cents-a-gallon tax on gasoline “until it’s appropriate,” though it’s unclear how much of the tax cut would reach consumers at the pump. 

Trump acknowledged the savings to consumers would be a fraction of the run-up in prices related to the conflict.

“It’s a small percentage, but it’s still money,” Trump said.

The average national price for regular gasoline has surged since the U.S. and Israel attacked Iran in February, reaching $4.52 a gallon as of May 10. The conflict has disrupted shipping through the Strait of Hormuz — through which about a fifth of the world’s oil and liquefied natural gas flowed before the war. 

Trump first broached the idea in a phone interview with CBS earlier in the day. Following the report, Sen. Josh Hawley (R-Mo.) said May 11 he would introduce legislation to suspend the gas tax. 

President Trump told CBS News on Monday that he intends to suspend the federal gas tax "for a period of time" and phase it back in "when gas goes down."

The president made the comments in a phone interview with CBS News chief White House correspondent @nancycordes. Suspending… pic.twitter.com/6jmAsmzoNX — CBS News (@CBSNews) May 11, 2026

If supporters are successful, it’s unclear whether the temporary tax cut would significantly lower prices at the pump. A pause on the gas tax would likely lower prices between 10 and 16 cents a gallon, according to research from the Bipartisan Policy Center in April, citing estimates from the impacts of state-level gas tax suspensions in 2022.

“The pass-through is rarely complete,” said Andrew Lautz, director of tax policy at the Bipartisan Policy Center.

READ MORE: Kentucky Gov. Beshear to Cut Fuel Taxes by 10 Cents

Compared with the $1.54-per-gallon increase in the average national cost of gasoline since the war started, a pause wouldn’t be a “massive improvement,” said Patrick De Haan, head of petroleum analysis at GasBuddy. The move also likely would keep consumers from cutting back as gasoline supplies dwindle, he said.

“This is like putting lipstick on a pig,” De Haan said. “The real problem remains unresolved.”

Headline: "Trump calls for federal gas tax suspension"

But this comes at a cost...

The U.S. federal gas tax currently imposes an 18.4 cent-per-gallon levy on gasoline and a 24.4 cent-per-gallon tax on diesel fuel. These taxes are a major source of funding for the federal… pic.twitter.com/5JLwlYjZyn — OilPrice.com (@OilandEnergy) May 11, 2026

Trump is facing immense pressure to lower gasoline prices ahead of the midterm elections in November that will determine control of Congress. But like most presidents, he has few good tools at his disposal to tame surging prices.

In addition to tapping the Strategic Petroleum Reserve again, Trump could place export controls on oil and refined products such as gasoline, though experts have cautioned that such measures likely would be limited in the relief they provide and could have unintended consequences. The White House has repeatedly signaled that such a move is off the table.

Meanwhile, gasoline stockpiles are near their 10-year lows seasonally, according to Department of Energy data. And in the Midwest, where pump prices have risen the fastest, supplies of gasoline are at their second-lowest seasonal levels ever.

Pausing federal gas tax collections could have devastating consequences for the Highway Trust Fund, which pays for the construction and repair of interstate highways, roads and bridges, unless lawmakers find a way to backfill the loss. The fund draws more than 80% of its funding from the gas tax and a 24.4 cents-per-gallon levy on diesel, according to the Tax Policy Center.

Georgia, Indiana, Utah and Kentucky have temporarily waived or lowered state gas taxes in response to growing prices. Lawmakers in Alabama, New York, Pennsylvania and South Carolina have called for similar measures.

RELATED: Georgia Gov. Kemp Suspends Motor Fuel Taxes for 60 Days

Indiana Gov. Mike Braun announced an expansion of a gas tax holiday in his state last week.

Sen. Mark Kelly (D-Ariz.) and Rep. Brendan Boyle (D-Pa.) have also been pressing for a temporary halt to the tax. Kelly introduced a bill in March to suspend the tax through Oct. 1.

Boyle, the ranking Democrat on the House Budget Committee, proposed suspending the tax any time average gas prices rise above $4 a gallon. He would backfill the Highway Trust Fund by diverting $30 billion in “existing federal subsidies” for oil and gas companies to the fund, which sends grants to state and local governments to pay for construction and repairs.

MORE: States Weigh Motor Fuel Tax Holidays as Pump Prices Surge

Recent efforts to suspend the gas tax have received little support in Congress. Then-President Joe Biden proposed a three-month suspension in 2022 to help offset a surge in oil prices following Russia’s invasion of Ukraine. Five states, including New York and Connecticut, suspended their gas taxes at the time.

But congressional leadership from both parties swiftly rejected Biden’s proposal, questioning how much it would lower prices for consumers. Democratic leaders, whose party controlled both the House and Senate at the time, dismissed the idea. Sen. Mitch McConnell (R-Ky.), then the top-ranking Republican in the Senate, called it a “silly proposal.”

Written by Caitlin Reilly, Ari Natter and Will Kubzansky