White House Moves to Pause Federal Gas Tax Amid Iran War

White House officials are advancing President Trump’s proposal to suspend the 18.4-cent federal gas tax, a change that would reduce pump prices by about 18 cents per gallon. The proposal has risen in priority in recent days after being treated as a backup option through April, according to administration officials.

Support inside the West Wing strengthened after ceasefire talks with Iran stalled and with the Memorial Day travel period approaching. The proposed suspension would take effect only if Congress passes enabling legislation.

The national average price for regular gasoline has climbed above $4.50 per gallon. Backers in the administration say the tax pause could provide immediate, easy-to-understand relief at the pump while supply measures, including releases from the Strategic Petroleum Reserve, are underway. Opponents point to reduced revenue for highway and transit programs and to the need for lawmakers to find offsets before approving a pause.

Fuel prices rose after disruptions to oil flows tied to the closure of the Strait of Hormuz. Since the conflict began, retail gasoline spending in the United States has increased by an estimated $39.6 billion.

The Strategic Petroleum Reserve fell by 8.6 million barrels in the largest single-week withdrawal on record, marking a seventh straight weekly decline and the longest run of draws since 2023.

A recent consumer survey found 56% of Americans reported higher gas spending over the past three months, up from 24% in April 2025. White House officials say those figures have increased pressure for a quick policy response.

In a recent interview, President Trump said he wants to pause the federal gas tax “for a period of time.” He also emphasized that preventing Iran from obtaining a nuclear weapon is his administration’s primary objective, saying, “I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: we cannot let Iran have a nuclear weapon. That’s all.”

Any suspension would reduce receipts to the Highway Trust Fund and requires congressional approval. Lawmakers will weigh the immediate effects on household fuel bills against impacts on transportation funding and longer-term fiscal choices.