Biden expected to urge Congress to temporarily suspend gas tax

President Biden on Wednesday is expected to call on Congress to temporarily suspend the gas tax during the summer months, according to sources familiar with the plan. 

Biden will ask that Congress assist in lifting the 18 cent tax per gallon on regular gasoline during the busy summer months, a source said. 

The White House has been weighing a recommendation on a federal gas tax holiday for the past week, The Hill first reported, as gas prices topped $5 per gallon on average nationally. Already high gas prices have been exacerbated by Russian President Vladimir Putin’s war in Ukraine.

But the gas tax holiday faces significant opposition in Congress, even among top Democrats, including House Speaker Nancy Pelosi (Calif.), who poured cold water on the idea earlier this year. 

To date, the plan has received mixed reviews on Capitol Hill, with some arguing it would compromise infrastructure projects, as the gas tax supports a road infrastructure fund. Companies would also need to pass the savings on to consumers for the proposal to successfully provide some relief. Others say it would only contribute to already record high inflation. 

But Biden on Tuesday dismissed the idea that a gas tax holiday would have a significant impact on infrastructure funding, given that the tax revenue goes toward road projects. 

“It will have some impact, but it’s not going to have an impact on major road construction and major repairs,” he told reporters following an event for COVID-19 vaccines. 

Biden said that he would make a decision on the federal gas tax holiday by week’s end.

Advocates for a gas tax suspension view it as an easy way to get savings to Americans amid record gasoline prices.

Biden is scheduled to deliver remarks Wednesday afternoon “on gas prices and Putin’s Price Hike,” according to the White House schedule.