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Do Drivers Really Need a Federal Gas Tax Holiday in 2026? Debate is Heating Up Again

Kiplinger·Kelley R Taylor·6 months ago
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With gas prices climbing amid tensions in the Middle East (averaging $4.50 a gallon according to AAA , up more than 50% since the start of the war with Iran), President Donald Trump says he wants to suspend the federal gas tax “for a period of time” to help drivers.

But some economists say the policy would likely have only a limited effect, since gasoline prices are driven mainly by global oil markets rather than federal taxes.

What's a driver to do as we head toward the Memorial Day holiday? Read on.

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