Gas Tax Holiday Gains Momentum in Washington
The White House and some Republican lawmakers recently added momentum to a legislative proposal to suspend the federal gas tax, providing drivers with a temporary federal gas tax holiday. ASCE is urging Congress to reject the idea, warning that a suspension would weaken Highway Trust Fund revenue, threaten long-term transportation funding, and may not deliver meaningful savings to drivers. The Highway Trust find is the primary federal funding source for road, bridge, and other transportation infrastructure.
Sen. Josh Hawley (R-MO) on May 11th introduced the Gas Tax Suspension Act, which would suspend the federal tax on gas and diesel for 90 days. The bill would allow the president to extend the suspension for an additional 90 days if he determines economic conditions merit a continued pause. Rep. Anna Paulina Luna (R-FL) indicated she would lead a corresponding legislative effort in the U.S. House of Representatives. President Donald Trump said in an interview May 11th that he would support pausing the federal gas tax for some time.
What’s Driving Calls to Suspend the Gas Tax?
This proposal has gained momentum as a response to high fuel prices, which have soared primarily because of the Iran war and the blocking of the Strait of Hormuz. As of May 12th, 2026, the national average price of a gallon of gasoline was $4.50, while the national average price for a gallon of diesel was $5.64, according to AAA.
Some Democratic lawmakers have been promoting a pause on the federal gas tax for months. On March 9th, Sens. Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) introduced the Gas Prices Relief Act, which would suspend the federal gas tax through October 1st, 2026. Rep. Chris Pappas (D-NH) is leading companion legislation in the House.
Why ASCE Strongly Opposes a Gas Tax Holiday
ASCE’s opposition to a proposed gas tax holiday has been swift and widespread. This week, ASCE issued a Key Alert to its members, released a press statement, and sent a letter to House and Senate leaders advising them against it ASCE also joined its partners in the Transportation Construction Coalition, which held its annual Fly-In in Washington from May 12th-13th, in sending a letter to members of Congress opposing a gas tax suspension.
ASCE strongly opposes any efforts to suspend the gas tax at the federal and state levels. The primary funding mechanism for the nation’s transportation networks, the gas tax rate has not changed since 1993 and its purchasing power has declined considerably over the past three decades. Suspending the gas tax would result in the loss of billions in revenue from the Highway Trust Fund (HTF), significantly diminishing much of the progress made in recent years to improve our nation’s vital infrastructure systems. Any prolonged pause in the collection of gas tax revenue could also make it more difficult for Congress to enact a surface transportation reauthorization bill before existing programs expire September 30th.
A Suspension Won’t Guarantee Savings at the Pump
A gas tax suspension would not necessarily guarantee savings for consumers. A variety of factors, such as supply and demand, affect the prices people actually see when they pull up to a fuel station. Furthermore, there is no mechanism to ensure motorists would see any real relief at the pump.
Long-Term Risks to Infrastructure Funding
These legislative proposals would also set an irresponsible precedent of suspending critical federal transportation funding whenever there is volatility at the pump. Additionally, undoing a gas tax suspension would be difficult and unpopular if one is enacted, especially if fuel prices have not come down, further threatening the largest source of revenue for the HTF.
Tell Congress: Protect the Highway Trust Fund
ASCE will continue to monitor legislative efforts to suspend the federal gas tax and communicate with ASCE’s members on how to engage in this important issue. Click here to write your members of Congress to urge them to reject a gas tax holiday and protect the Highway Trust Fund.