The Gas-Tax Reckoning
The federal gas tax, which funds highway and transit projects, is under scrutiny as gas prices rise. Congress is considering a temporary suspension of the tax, but many senators oppose this move, citing potential negative impacts on infrastructure funding. The gas tax has not been raised since 1993 and is increasingly seen as inadequate to meet the nation's transportation needs.
- ▪The average price of gas has risen from less than $3 to nearly $4.50 since February.
- ▪Congress is considering suspending the 18.4-cent federal gas tax for the first time ever.
- ▪The gas tax has not been raised since 1993 and is insufficient to cover federal highway and transit costs.
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IdeasThe Gas-Tax ReckoningPausing it would be a lose-lose proposition.By Henry GrabarDavid Paul Morris / Bloomberg / GettyMay 27, 2026, 7 AM ET ShareSave In February, the average price of gas was less than $3 a gallon. Today it’s nearly $4.50. Since the start of the Iran war, Americans have spent an extra $39 billion filling the tank.As summer travel season arrives, Congress is considering suspending the 18.4-cent-per-gallon federal gas tax, which largely funds the nation’s highway and transit capital spending, for the first time ever. Democratic Senators Mark Kelly and Richard Blumenthal proposed a “gas-tax holiday” in March; Republican Senator Josh Hawley introduced a bill to suspend the tax. Donald Trump has urged doing so.
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