Trump's gas tax suspension won't save struggling Americans

May 13, 2026

Trump wants to suspend the federal gas tax, but the panel says it's too small to matter — bad news for families squeezed by gas prices and rising food costs.

  • The federal gas tax is only 18 cents a gallon, so suspending it barely helps when gas is $4.50.
  • Half the country has less than $500 saved, and the jump from $2.50 to $4.50 gas is crushing household budgets.
  • A smarter fix would be a $1.50-per-gallon diesel tax credit for trucking companies, which would quickly bring product prices down.
  • Fertilizer prices have jumped because of the Strait of Hormuz conflict, pushing farmer margins negative — big farms will buy out small ones, and food prices will spike 6–18 months from now.
  • Trump signaled no regime change in Iran, saying they can't have nukes but "we can't run them" — America first framing.

Outlook: If gas and food costs stay high, the affordability squeeze on Main Street becomes a bigger political risk than Iran itself.

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