Trump wants to suspend the federal gas tax. The move could mean higher debt—and more potholes

Gas prices have hit their highest level since 2022, now averaging over $4.50 nationwide, and as high as $6.16 in California. But that’s apparent to anyone at the pump. As the U.S. and Iran fail to reach an agreement to end the war and reopen the Strait of Hormuz, President Donald Trump is exploring new ways to relieve Americans’ pain when they fill up. On Monday, Trump told CBS he was considering a suspension of the federal gas tax, a move that has never been done before (though former President Joe Biden did call on Congress to pass a gas tax holiday in July 2022 because of rising gas prices, which averaged $4.25 at the time). The move would eliminate the 18.4 cents per gallon collected on gas and 24.4 cents per gallon on diesel. The federal gas tax is specifically earmarked for the Highway Trust Fund (HTF), which the government uses to pay for infrastructure fixes. While the suspension may sound like meaningful relief for consumers, experts say the move won’t lower prices by a significant amount, and that’s because the lost revenue would need to be offset elsewhere in the budget. Carl Davis, research director of the Institute on Taxation and Economic Policy, said it’s most likely to be added to the country’s already-hemorrhaging budget deficit. “In practice what happens is it gets tacked on the debt,” he told Fortune. Like the last time this was floated with Biden, the president can’t act on this move alone, as Congress holds the power of the purse. However, shortly after news broke Monday about the president’s desire to suspend the gas tax, Sen. Josh Hawley (R-MO) said in a post on X he was introducing legislation to do so. Gas today averages $4.52 across the country, according to AAA, and many argue that it’s a tax on consumers that’s already too big to bear, especially for lower-income drivers and “super-commuters.” With the Strait of Hormuz still under a double blockade and Iran rejecting the U.S.’s most recent peace plan, it’s unclear when gas prices will fal