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## Overview Republican Senator Josh Hawley is set to introduce legislation to suspend the federal gasoline tax, following President Trump's reported backing of the measure, as the Iran war drives fuel prices sharply higher (FT, May 27). The proposal represents one of the most significant domestic energy policy responses to the Hormuz conflict. ## Legislative Mechanics - Senator Josh Hawley (R-MO) is reportedly introducing the suspension bill (FT, May 27) - Trump has reportedly backed the move (FT, May 27) - The federal gasoline tax is currently 18.4 cents per gallon; suspension would represent meaningful relief for consumers but significant Highway Trust Fund revenue loss - No timeline for passage or specific duration of suspension has been confirmed ## Political Context The gas tax suspension is a politically salient response to consumer pain but faces structural opposition: the Highway Trust Fund finances federal road and infrastructure spending, and suspension could trigger project delays or require compensatory appropriations. Prior gas tax holiday proposals (including in 2022) failed in Congress despite bipartisan consumer appeal. ## Economic Implications - Consumer relief estimated at modest per-fill savings, though symbolic political value is high - Highway Trust Fund solvency risk if suspension is extended - Potential interaction with state gas tax policies - Distributors and retailers may partially capture the savings rather than passing through to consumers ## Broader Policy Landscape The suspension proposal sits within a larger set of Iran war economic responses including: strategic petroleum reserve drawdowns, potential price controls debates, and airline fare regulation discussions. It will likely recur in legislative calendars as long as fuel prices remain elevated.