# Trump’s Gas Tax Holiday Would Be a Missed Opportunity 

Congress will have to pass a highway bill reauthorization before September 30, 2026. It should use that opportunity to permanently repeal the gas tax.

May 12, 2026 • News Releases 

Recently, President Donald Trump mentioned to CBS News that he is considering pausing the federal gas tax in light of rising gas prices caused by the war in Iran. A new [blog post](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fdont-pause-gas-tax-repeal-it/1/0100019e1c6a9262-b74ec0df-ce7e-416f-a461-de7988d50f4e-000000/POmZgal0QdiDlFI3ab7k7tZV7PE=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOmY3YjJlNWE1ZmQ0MmIxMGZlMGVlZjgzNjc4YTNhMzU3Ojc6MWJiMTozZTBjMzRmMDk5YjA0MDhkNzQwMzhkYzhkMTIwNmZmMmQyMDVjZGJkMDEwYjNmZjk1NjJhNzRkMGYzZmNmNzI3Omg6VDpO) by [Adam Michel](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fpeople*2Fadam-n-michel/1/0100019e1c6a9262-b74ec0df-ce7e-416f-a461-de7988d50f4e-000000/fLAEDCMYoPUEKTOTLb3RD6ptzO0=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOmY3YjJlNWE1ZmQ0MmIxMGZlMGVlZjgzNjc4YTNhMzU3Ojc6NTBiNjoxNGFiZjA5YWRjNTk5Y2I3YWVmNjM2NzhmNGYxNzU2NmQ5MjlmZTM2MjA5YTYyZmIzZWNiNDIxOTliMDZjODU2Omg6VDpO), director of tax policy studies at the Cato Institute, argues that a temporary pause would be a missed opportunity, writing in part:

> Congress will have to pass a highway bill reauthorization before September 30, 2026. It should use that opportunity to permanently repeal the gas tax. A federal gas tax repeal would permanently lower prices and be a genuine step toward decentralizing government power. A temporary holiday is just a political gesture.

To speak with Adam Michel on the federal gas tax, contact Cato PR at [pr@​cato.​org](mailto:pr@cato.org).

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