President Donald Trump went further than any administration official has gone so far, telling CBS News on Monday that he intends to suspend the federal gasoline tax as American drivers face pump prices that have climbed sharply since the start of the Iran conflict.

The move escalates what began over the weekend as an “open to all ideas” posture from Energy Secretary Chris Wright into a direct presidential endorsement of a gas-tax holiday, with legislation already being introduced on Capitol Hill.

Trump made the comments in a phone interview with CBS News chief White House correspondent Nancy Cordes. He described the suspension as lasting “for a period of time” and said the tax would be phased back in “when gas goes down.”

CBS News reported the details of the exchange:

President Trump told a national audience Monday that he intends to suspend the federal gas tax for a period of time while drivers absorb sharply higher prices at the pump. He described stopping the excise taxes as “a great idea” and said the tax would be phased back in “when gas goes down.” That framing is important because Trump presented the idea as targeted relief for a current price shock, not as a permanent rewrite of the federal fuel-tax system.

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The comments came in a phone interview with chief White House correspondent Nancy Cordes after weekend remarks from Energy Secretary Chris Wright put the tax holiday on the table. The new line from the president moved the issue from cabinet-level openness to direct presidential backing. The report also tied the push to rising gasoline and diesel prices during the Iran conflict, putting the proposal squarely in the pocketbook lane for families, commuters, truckers, and businesses that have to pass fuel costs through the economy. It made clear that the president was speaking about the federal tax itself, which is the exact relief lever Congress would have to address.

The president also pointed to congressional allies who are ready to carry the ball legislatively. When asked about the need for congressional authorization, Trump referenced Senator Josh Hawley and Representative Anna Paulina Luna, saying they had “a bill or something” and calling it “very good.”

Hawley wasted no time confirming the effort.

The Missouri senator announced Monday that he is introducing legislation to suspend the gas tax, a move that gives Trump’s stated intention an immediate vehicle in the Senate.

Axios reported on the broader context and what the proposal would mean for consumers:

The new Trump comments changed the political posture around the proposal. A White House official had previously indicated that a gas-tax suspension was not under active consideration. Now the president himself is backing the idea while fuel prices remain elevated. Regular gasoline was averaging about $4.52 per gallon Monday and diesel was around $5.64 per gallon, according to AAA figures cited in the report.

The practical path still runs through Congress because the federal excise tax is written into law. When Trump was asked about congressional authorization, he pointed to Senator Josh Hawley and Representative Anna Paulina Luna, saying they had “a bill or something” and calling it “very good.” That matters for the legislative timeline because Hawley quickly said he was introducing a gas-tax suspension bill the same day. The report also connected Monday’s development to Wright’s Sunday comments that the administration was open to all ideas for lowering consumer costs. That sequence gives the story its news value: the idea moved from a cabinet official keeping options open to the president putting his own weight behind a temporary tax holiday.

The tax Trump wants to suspend is not trivial in what it funds. According to the Federal Highway Administration, the current motor-fuel excise tax stands at 18.4 cents per gallon for gasoline and gasohol and 24.4 cents per gallon for diesel and other special fuels:

The Federal Highway Administration explains that receipts flowing into the federal Highway Trust Fund come from highway-related taxes, including levies on highway fuel, tires, heavy vehicle use, and truck or trailer sales. The current motor-fuel excise tax is 18.4 cents per gallon for gasoline and gasohol and 24.4 cents per gallon for special fuel, primarily diesel. Motor-fuel excise taxes raise the largest share of Highway Trust Fund revenue, which is why any holiday would immediately become a transportation-funding question as well as a consumer-relief question.

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The IRS collects the revenue and the Treasury Department deposits it into the trust fund. Those funds are then distributed to states through formulas set in federal legislation, supporting highway construction, maintenance, and safety programs. A suspension of the gasoline and diesel taxes would directly reduce that primary revenue stream for the duration of the holiday unless Congress replaces the money, limits the suspension, or builds another funding mechanism into the legislation.

That funding question will be central to any congressional debate. But for American families staring at $4.52-a-gallon regular gasoline, even 18.4 cents of relief per gallon adds up fast over a summer of fill-ups, and the diesel savings at 24.4 cents per gallon could provide meaningful relief for truckers and businesses whose shipping costs ripple through the entire economy.

No law has been enacted yet, and the suspension cannot take effect until Congress acts. But the speed of this escalation is notable. In less than 48 hours, the administration went from Wright floating openness to all ideas to the president himself telling a national news outlet he intends to get it done. With Hawley introducing a bill and Luna working the House side, the legislative machinery is already in motion. The question now is how fast Congress can move while Americans are paying elevated prices every time they pull up to the pump.

What’s your conclusion?

This is a Guest Post from our friends over at WLTReport. View the original article here.
 

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