A Possible Holiday for the Highway Trust Fund
In 1956, the United States government created the Highway Trust Fund, a federal accounting mechanism funded through excise taxes, with the majority of its revenue coming from what is commonly known as the “gas tax.” The trust fund is divided into two separate accounts: the Highway Account and the Mass Transit Account. Most of the funding is allocated to state and local governments for infrastructure projects, including maintenance and expansion of the Interstate Highway System.
Over the years, Congress has increased the flat tax added to consumers’ gasoline purchases. The tax was originally introduced at 4 cents per gallon and eventually reached the current rate of 18.3 cents per gallon in 1993.
In March, U.S. Representative Chris Pappas (D-NH-01) and Senator Mark Kelly (D-AZ) introduced the Gas Price Relief Act of 2026 in their respective chambers of Congress. The legislation would establish a temporary holiday on the federal gasoline tax beginning upon enactment and lasting through October 1, 2026. Both bills currently remain in committee.
Support for a gas tax holiday has increased alongside rising nationwide fuel prices, which consumers have been facing amid geopolitical tensions in the Middle East. On May 11, Senator Josh Hawley announced that he would introduce legislation to temporarily suspend the federal gas tax after President Trump stated in a phone interview with CBS News, “Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.”
Representative Anna Paulina Luna (R-FL-13) also announced on May 11 in a post on X, “This week I will be introducing a bill in the House to suspend the federal gas tax in light of Trump’s recent remarks. American families need this relief on gas prices. My office will be working directly with President Trump to ensure we deliver this win for the American people.”
With the national average gas price reaching $4.52 per gallon as of May 11, 2026, according to AAA, and midterm elections approaching later this year, it is likely Congress will continue exploring ways to provide relief to American consumers at the fuel pump.
Bob Redding is the Automotive Service Association’s Washington, D.C., representative. He is a member of several federal and state advisory committees involved in the automotive industry.
