Trump says he’ll move to suspend federal gasoline tax. He can’t do it on his own. Congress would have to approve the move. The tax provides more than $23 billion per year for federal highway and public transit programs. “Instead of suspending the tax, we should suspend the war.”

Rofl all the illegal shit Trumpstein has done without congress, but temporary tax cut, we need congress.

FYI: Gas taxes in the United States **function as user fees, where drivers contribute to the maintenance of the infrastructure they use**. These taxes are typically structured as a flat, **cents-per-gallon** excise tax rather than a percentage of the purchase price. [1, 2, 3, 4]
**1. Tax Breakdown (Federal vs. State)**
The total tax you pay at the pump is a combination of federal, state, and sometimes local levies. [5, 6]

**Federal Gas Tax:** Set at **18.4 cents per gallon** for gasoline and **24.4 cents per gallon** for diesel. This rate has remained unchanged since **1993** and is not indexed to inflation.
**State Gas Taxes:** These vary significantly by location, with a national average of approximately **32.6 to 33.5 cents per gallon** for gasoline as of early 2026.
**Highest Rates:** California (**70.9 cents**) and Illinois (**66.4 cents**).
**Lowest Rates:** Alaska (**9.0 cents**) and New Mexico (**18.9 cents**). [1, 5, 7, 8, 9, 10, 11, 12, 13]

**2. Where the Money Goes**
Most gas tax revenue is legally “earmarked” for specific transportation-related accounts: [14]

**Highway Trust Fund (HTF):** The vast majority of federal gas tax revenue supports this fund, which pays for the construction and maintenance of the **interstate highway system**.
**Mass Transit:** Approximately 2.86 cents of the federal tax is diverted to public transportation projects.
**Environmental Cleanup:** A small portion (**0.1 cents**) goes toward the **Leaking Underground Storage Tank (LUST)** Trust Fund to manage environmental risks from fuel storage. [5, 8, 9, 14, 15]
**3. Current Trends and Challenges**

**Declining Revenue:** As vehicles become more fuel-efficient and electric vehicle (EV) adoption grows, the total gallons sold—and thus tax revenue—has begun to stagnate or decline.
**Inflation Erosion:** Because the federal tax is a flat cent-per-gallon rate rather than a percentage, its real purchasing power has dropped by nearly **50%** since 1993 due to rising construction costs.
**Gas Tax Holidays:** In times of high fuel prices, lawmakers often propose **”gas tax holidays”** or temporary suspensions to provide immediate relief to consumers. For example, as of May 2026, several states including **Georgia, Indiana, and Utah** have experimented with such suspensions. [2, 10, 16, 17, 18, 19, 20]
Would you like to see a **comparison of your state’s gas tax** compared to its neighbors?

[1] [https://taxfoundation.org](https://taxfoundation.org/data/all/state/gas-taxes-state/)
[2] [https://taxfoundation.org](https://taxfoundation.org/data/all/state/gas-taxes-state/)
[3] [https://taxpolicycenter.org](https://taxpolicycenter.org/briefing-book/how-do-state-and-local-motor-fuel-taxes-work)
[4] [https://usafacts.org](https://usafacts.org/articles/how-much-do-you-pay-in-gas-taxes/)
[5] [https://en.wikipedia.org](https://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States)
[6] [https://www.capitalone.com](https://www.capitalone.com/learn-grow/money-management/gas-tax/)
[7] [https://en.wikipedia.org](https://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States)
[8] [https://www.eia.gov](https://www.eia.gov/tools/faqs/faq.php?id=10&t=10)
[9] [https://blog.turbotax.intuit.com](https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/the-highs-and-lows-of-gasoline-tax-15098/)
[10] [https://taxfoundation.org](https://taxfoundation.org/taxedu/glossary/gas-tax/)
[11] [https://www.washingtonpost.com](https://www.washingtonpost.com/business/2026/05/12/gas-prices-federal-tax-iran-trump/)
[12] [https://www.eia.gov](https://www.eia.gov/todayinenergy/detail.php?id=67165)
[13] [https://dot.nebraska.gov](https://dot.nebraska.gov/media/qh5pifiq/gas-tax.pdf)
[14] [https://thehill.com](https://thehill.com/newsletters/personal-finance/5872627-how-much-would-suspending-the-federal-gas-tax-save-drivers/)
[15] [https://taxpolicycenter.org](https://taxpolicycenter.org/fiscal-facts/what-are-state-gas-taxes-and-how-are-they-used)
[16] [https://finance.yahoo.com](https://finance.yahoo.com/personal-finance/taxes/article/trump-backs-gas-tax-holiday-as-pump-prices-rise-what-drivers-should-know-153644058.html)
[17] [https://www.ncsl.org](https://www.ncsl.org/transportation/variable-rate-gas-taxes)
[18] [https://www.nbcnews.com](https://www.nbcnews.com/data-graphics/federal-gas-tax-rate-states-trump-iran-war-prices-map-rcna344540)
[19] [https://theconversation.com](https://theconversation.com/suspending-federal-gas-tax-wouldnt-save-drivers-as-much-as-they-might-hope-heres-what-goes-into-the-price-of-a-gallon-of-gas-282702)
[20] [https://www.cbsnews.com](https://www.cbsnews.com/news/federal-gas-tax-suspension-impact-gas-prices/)

This marks the initial step towards privatizing the federal highway system. Without the tax revenue, they’ll have the justification to neglect road maintenance and eventually sell the system to their billionaire associates, who will impose exorbitant tolls on the public.

That’s the thing about “tax and spend liberals”, at least they tax BEFORE they spend, people on the right NEVER have a plan to deal with spending…

So we can all save 18 cents a gallon, which will still have it be the highest ive ever payed for gas, and in exchange there will be no funds for roads repairs, so I can look forwaed to my atate and local taxes going up to plug that hole.

Sounds like a standard republican plan in 2026.

Funny how he can NOT suspend federal gasoline tax without Congress, but he can DO EVERYTHING ELSE WITHOUT Congress such as placing Tariffs, declaring war or declaring change to the Voting Laws.