House Democrats are mounting a unified opposition to President Trump's proposed gas tax holiday, erecting a significant political hurdle for the administration as it grapples with soaring inflation and record fuel prices. The president this week floated a temporary suspension of the 18.4-cent-per-gallon federal tax, aiming to offer drivers some relief amid the economic fallout from the ongoing war with Iran.
Democratic lawmakers, however, are warning that the move would starve the Highway Trust Fund of critical revenue, jeopardizing infrastructure projects without any guarantee that savings would reach consumers. They argue the only effective remedy is to address the conflict driving the price spike. "His policies on energy and the war in Iran drove gas prices up, so now he's saying: Let's get rid of the tax rather than dealing with the real problem that he has created without a strategy," said Rep. Richard Neal (Mass.), the top Democrat on the House Ways and Means Committee. "The trust fund is already ailing, because it just doesn't collect the kind of revenue it once did."
Another Democratic lawmaker echoed those concerns, noting the federal deficit. "My concern is that you're going to take a lot of money away from the federal government when we're already running a large deficit," the lawmaker said. "And 18 cents can vanish in a second."
The resistance comes as gas prices have surged due to trade disruptions from the U.S.-Israel military campaign against Iran, launched on Feb. 28. On Wednesday, the national average hit $4.51 per gallon, according to AAA—up from $4.13 a month ago and $3.16 a year ago. That spike has rippled through the economy, raising costs for groceries, air travel, and other goods, and helped push inflation to 3.8% last month, the highest since May 2023. The trend poses a serious political liability for Trump and Republicans as they fight to retain control of Congress in November's midterms.
Facing low approval ratings, Trump on Monday pitched the gas tax holiday as a quick fix. "I think it's a great idea," he told CBS News. "Yup, we're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in." But implementing the plan requires congressional approval, and while some Republican allies have embraced it, GOP leaders remain cautious. Speaker Mike Johnson (R-La.) said the moratorium "may help" but stopped short of endorsing it or committing to floor action. Senate Majority Leader John Thune (R-S.D.) was more skeptical, arguing that "the best way" to lower fuel costs is to reopen the Strait of Hormuz, which has been effectively closed by the war. "We do have a Highway Trust Fund," Thune added, "and it does perform an important service in making sure that we've got highways and roadways across our country that are serviceable."
Democrats largely agree with that caution. They were cool to a similar gas tax holiday proposed by President Biden in 2022, when gas topped $5 a gallon. Now, with a Republican in the White House, their opposition is even more pronounced. "So it'll cut money for projects to rebuild roads and bridges? No. End the war. And if you want to do a gas tax holiday, you've got to find a way to offset it," said Rep. Jim McGovern (D-Mass.). "I'm a liberal, and I care about the deficit and the debt. These other guys don't give a s---."
Not all Democrats are against the idea. Rep. Chris Pappas (D-N.H.), who is running for the Senate, has introduced legislation that would backfill Highway Trust Fund losses from the general fund and penalize oil companies that fail to pass savings to drivers. He acknowledged that 18 cents is a "modest" reduction, but argued that any help matters for squeezed consumers. "They're experiencing sticker shock, and while cutting it would be modest, we should be doing everything possible to lower prices," Pappas said.
Most Democrats, however, are hammering Trump for launching what they call a "war of choice" with Iran. They contend that ending the conflict is the only real solution to the economic pain. Rep. Rosa DeLauro (Conn.), the senior Democrat on the House Appropriations Committee, drew a parallel to her work against wars in Central America in the 1980s. "They found that in El Salvador, there were bodies floating down the river. And people were wringing their hands about why the bodies were there. My point was: Go to the source of the river and figure out who's throwing them into the river," she said. "In this instance, let's focus on why this war of choice has created the economic crisis."
The political battle over the gas tax holiday reflects broader tensions as Trump struggles to manage inflation and the economic consequences of his foreign policy. With midterm elections approaching, the outcome could shape voter perceptions of his handling of the economy. For more on the administration's foreign policy challenges, see our coverage of Trump and Xi's cooperative but substance-light summit in Beijing.
