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Trucking And Construction Just Came Out Against Trump's Gas Tax Holiday

Published May 13, 2026
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Summary:
  • Trades that lean Republican - trucking and construction - are pushing back on Trump's planned gas tax holiday.
  • Both rely on the U.S. Highway Trust Fund, which is paid for by gas and diesel taxes.
  • Gas prices are up about 50% since the Iran war began on Feb. 28, with the national average hitting $4.50 a gallon.

The pushback on Trump's gas tax holiday isn't just coming from Democrats.

It's coming from his own base too.

Trucking and construction are two Republican-leaning trades that run on highways. Both just told the White House to slow down.

The Tax Trump Wants To Pause

The U.S. gas tax is 18.4 cents per gallon. The diesel tax is 24.4 cents.

That cash flows into the Highway Trust Fund. The fund pays for U.S. roads, bridges, transit, and other build work.

It's the same fund that backs the jobs and deals trucking and construction firms rely on.

Trump pitched pausing both taxes on Monday. His party then filed bills the same week.

The catch is that Congress controls U.S. taxes. So the move would need them to act.

Brian Turmail is the spokesman for the Associated General Contractors of America. He didn't soften it.

"A gas tax holiday is a good way to blow a hole in the collection of revenue for funding highway and transit repairs," Turmail said.

He added that it's a bad way to help drivers hit by high gas prices.

Curious how fights like this hit the market? Market Briefs explains it in five minutes a day - plus a free investing course when you sign up.

18 Cents Vs $1.50

Gas prices have jumped about 50% since the Iran war began on Feb. 28. The national average hit $4.50 a gallon on Tuesday.

Diesel, which is what trucks burn, is even higher at $5.64.

Senate Minority Leader Chuck Schumer laid out the math from the Senate floor.

"Eighteen cents of gas tax relief a gallon doesn't even come close to the $1.50 gas price increase from this war," Schumer said.

"18 cents is not $1.50," he added.

The Committee for a Responsible Federal Budget says a three-month pause without new revenue would add $10.5 billion to the deficit.

The national debt just crossed 100% of GDP this month. That's a key fact for budget hawks who don't want a cut without an offset.

Where Republicans Land

Not all in the GOP back the plan.

Sen. John Cornyn of Texas said he could live with a short pause. Sen. John Hoeven of North Dakota would rather focus on reopening the Strait of Hormuz.

"That's what's going to bring gas prices down the fastest and in the most significant way," Hoeven said.

A trio of trucking groups also weighed in. The American Trucking Associations, Truckload Carriers Association, and National Tank Truck Carriers all said that without new funds, road safety and infrastructure money "would evaporate."

This isn't the first try at a gas tax pause. President Biden pitched the same idea in 2022 when prices spiked after Russia hit Ukraine. That plan didn't get through Congress.

The math then was a lot smaller. Gas peaked near $5 a gallon, and the cost gap was smaller.

This time the price hit is much bigger.

What To Watch

The trucking and construction lobbies have made their stance clear. The next move belongs to Congress.

The real fix isn't a tax cut. It's an open Strait of Hormuz.

Want the daily five-minute briefing on what's driving the economy? Join Market Briefs for tomorrow's morning read - plus a 45-minute investing class as a bonus.

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