Gop’s Gas Tax Holiday Push Falters In House

House conservatives' push to temporarily suspend the federal gasoline tax to lower prices at the pump ahead of the midterm elections is dead in the water, a member of the House Freedom Caucus confirmed Wednesday.

House Speaker Mike Johnson (R-La.) threw cold water on the idea Wednesday, saying his caucus couldn't rally around any single proposal to pause the tax. He met with House Freedom Caucus members late Tuesday after the arch-conservatives held up a procedural vote to demand a floor vote for a bill to suspend the gas tax until 2027.

“I don't know that we have consensus around what that would look like,” Johnson said Wednesday in response to a question from POLITICO. “There were about five or six different ideas on it. There will be a number of measures in the days ahead, working to lower gas prices as much as possible. Of course, there's many factors in why gas prices are so high.”

Republicans are struggling to coalesce around measures to lower the cost of living for Americans as gas prices steadily rise. President Donald Trump's worsening trade war with Canada and the war in Iran are threatening farm and auto sectors just weeks ahead of the November elections that will decide who controls both chambers of Congress.

Conservatives this week said halting the gas tax — an idea Trump endorsed earlier this year — would help lower gas prices, but were blocked by members of their own party worried it would deplete a fund for highway upgrades.

The House will hold a series of votes Wednesday, then leave town until after the November elections.

Rep. Andy Harris (R-Md.), the main advocate of getting his gas tax suspension bill a vote, told POLITICO on Wednesday “the swamp’s addiction to spending prevailed at the expense of hardworking taxpayers once again,” when asked whether a vote would happen this week.

Gasoline prices nationally are averaging about $4.37 a gallon, according to the American Automobile Association, as the U.S.-Israel war with Iran continues to disrupt traffic through the critical Strait of Hormuz.

Diesel prices have also soared to about $6.31 a gallon, per AAA, and continue to hit record highs.

Even if the 18.4-cent-per-gallon decrease were fully passed on to consumers, gas prices would still be more than a full dollar higher than they were before the start of the conflict with Iran in February.

Harris' bill proposes pausing through year’s end the federal gasoline and diesel taxes — which are 18.4 cents and 24.4 cents, respectively. The funding from those taxes largely goes into the Highway Trust Fund, which finances federal funding for highways and mass transit.

The Highway Trust Fund is nearing insolvency due to increased fuel efficiency in vehicles, slowing annual growth in miles driven in America, and Congress failing to either raise the taxes or cut spending. The trust fund is projected to be exhausted in 2028. A transfer from the Treasury Department’s General Fund will likely be needed to prevent a shortfall.

Harris’ bill doesn’t include language that would make up for the lost revenue in the Highway Trust Fund caused by his legislation, unlike similar bills — such as one from Sen. Josh Hawley (R-Mo.) — introduced earlier this year that would use General Fund dollars to cover such a gap.

That gap prompted opposition to Harris' bill from key Republicans.

House Transportation and Infrastructure Chair Sam Graves (R-Mo.) confirmed to POLITICO he attended the Tuesday meeting with GOP leadership and Harris around the gas tax.

“We have to be concerned about what it would do to, you know, to our state DOTs and the projects that are out there, and, you know, what impact that would have, and the uncertainty that it would create,” Graves said of a temporary suspension of the gasoline tax.

Rep. Clay Higgins (R-La.), a member of the House Freedom Caucus, blasted Graves in a post to X on Tuesday evening, saying the Transportation Committee chair “killed” Harris’ bill.

“He was rude about it. Unbelievable,” Higgins wrote. “The swamp is fighting hard to come back.”

A spokesperson for House T&I Republicans did not immediately respond to a request for comment on Higgins’ post. Graves declined when asked by POLITICO to share details of the Tuesday meeting.

Gas tax holiday pushes haven’t fared well historically up on Capitol Hill. Earlier this year, Trump supported one, but GOP leaders in the House and Senate — including Johnson — threw cold water on the idea.

Then-President Joe Biden formally asked Congress to temporarily suspend the federal gasoline tax in 2022 as prices at the pump soared in the months following Russia’s invasion of Ukraine. Democratic congressional leaders at the time also balked at that proposal.

Sam Ogozalek and Andres Picon contributed to this report.