WASHINGTON, D.C. — Major trucking groups are pushing back against a proposed federal fuel tax holiday floated by President Donald Trump, warning that the move would provide little relief to drivers while cutting into funding used for highways, bridges, transit, and infrastructure projects.
Trump raised the possibility of a fuel tax holiday on Monday, May 11. Any pause would require action from Congress, and Republican lawmakers have already introduced legislation that would suspend the 18.4-cent federal tax on gasoline and the 24.4-cent federal tax on diesel.
Trucking Groups Say Savings May Not Reach Consumers
Later that same day, the American Trucking Associations, Truckload Carriers Association, and National Tank Truck Carriers issued a joint statement opposing the proposal.
“We understand and appreciate the desire to provide relief to Americans facing higher fuel costs,” the groups said. “However, history shows that gas tax holidays deliver negligible benefit to consumers. Because the tax is collected at the wholesale level and not at the retail pump, most savings never reach the consumer.”
The groups said the average motorist pays about $1.63 per week in federal fuel taxes, meaning a suspension could amount to only about 30 cents in weekly savings.
They warned that without replacement funding, fuel tax revenue used for highway safety and infrastructure projects would disappear, affecting the movement of people and freight nationwide.
“America’s highways are truckers’ shop floor,” the groups said. “While trucks are only four percent of vehicles on the road, the trucking industry covers nearly half of all Highway Trust Fund revenue.”
Construction Industry Also Raises Concerns
The construction industry also voiced opposition, noting that the federal gas and diesel taxes help fund the Highway Trust Fund, which supports road construction, maintenance, public transit, and infrastructure projects.
Brian Turmail, national spokesman for the Associated General Contractors of America, said a gas tax holiday would hurt transportation funding more than it would help drivers.
“A gas tax holiday is a good way to blow a hole in the collection of revenue for funding highway and transit repairs, but it’s a bad way to help drivers who are affected by higher gas prices,” Turmail said.
Gas prices were reported at about $4.50 per gallon Tuesday, while diesel was listed at $5.64 per gallon. Prices have risen amid the Iran war and disruptions tied to the Strait of Hormuz, where a major share of global oil normally moves.
Lawmakers Split on Proposal
Some Democrats argued that the proposed tax holiday would not do enough to offset rising fuel prices.
“Eighteen cents of gas tax relief a gallon doesn’t even come close to the $1.50 gas price increase from this war, and Republicans need to stop pretending that it does,” Senate Minority Leader Chuck Schumer said. “Offering Americans literal pennies on the dollar to cope with skyrocketing gas prices just won’t cut it — 18 cents is not $1.50.”
Some Republicans have supported the idea, including Rep. Anna Paulina Luna, who said she would introduce legislation, and Sen. Josh Hawley, who introduced a bill to pause the gas tax for at least 90 days.
Others expressed caution. Sen. John Cornyn said the fuel tax pays for highways and bridges but added he could support a temporary pause. Sen. John Hoeven said he could also live with a short-term holiday but was more focused on reopening the Strait of Hormuz to bring prices down.
Senate Majority Leader John Thune said he had opposed past fuel tax holiday proposals and questioned whether savings would actually reach consumers.
“If you lifted that, does that ultimately get passed on to consumer, to the customer, buyer out there, or does it get sucked up in the supply chain somewhere?” Thune said. “I think those are all fair questions to ask, but it’s a conversation that I think we’re willing to have, and I’m certainly willing to hear the president’s arguments.”
Budget Concerns Could Complicate Effort
Budget concerns could also affect the proposal. The national debt recently surpassed 100% of GDP, and the Committee for a Responsible Federal Budget previously projected that a three-month fuel tax holiday without replacement revenue could add $10.5 billion to the deficit.
The debate does not fall cleanly along party lines. Some Democrats have supported fuel tax pauses under certain conditions, including Texas state Rep. James Talarico and U.S. Rep. Brendan Boyle, who introduced legislation that would suspend the federal gas tax when the national average exceeds $4 per gallon.
For trucking groups, the concern remains centered on whether short-term savings would be worth the loss of highway funding that supports the roads truckers use every day.
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