Trump-backed gas tax holiday could slash prices for NJ drivers

🚗 Trump-backed gas tax holiday gains traction in Congress

⛽ NJ lawmakers once demanded gas tax relief — now many are quiet
💲 Could suspending the federal gas tax actually lower prices?

President Donald Trump is once again pushing for a suspension of the federal gas tax as Americans face rising fuel prices as a result of the Iran War, and a New Jersey congressman is stepping forward to make it happen.

U.S. Rep. Jeff Van Drew, R-N.J. 2nd District, announced he will sponsor legislation in Congress to temporarily suspend the federal gas tax following Trump’s public call for immediate relief for drivers. The current federal gas tax is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel.

Van Drew argued the move would provide direct relief to working families already struggling with inflation and high commuting costs.

“Families in South Jersey and across America are getting crushed every time they fill up,” Van Drew said in announcing the proposal. “Washington should not be profiting off people trying to get to work.”

According to supporters, suspending the federal gas tax could save the average driver hundreds of dollars over time, particularly in car-dependent states like New Jersey, where many residents commute long distances daily.

AAA reports the average price for a gallon of gas has surpassed $4.50 in New Jersey as of 5/12/2026. (Canva)

But critics say the proposal may create more political headlines than actual savings.

Opponents argue that oil companies and retailers could absorb part of the tax savings instead of fully passing it along to consumers. They also warn that suspending the federal gas tax would strip billions of dollars from the federal Highway Trust Fund, which finances road, bridge, and infrastructure projects nationwide.

The Congressional Budget Office has previously estimated that a federal gas tax holiday could cost the government tens of billions of dollars if extended for a significant period of time.

Some transportation advocates also argue the tax provides critical funding for aging infrastructure at a time when many states, including New Jersey, already face major transportation funding challenges.

NJ gas tax debates return as prices rise again

The renewed federal debate is also reviving memories of similar fights in New Jersey during the COVID-era spike in gas prices.

At the time, several New Jersey Democrats proposed temporarily suspending all or part of the state gas tax to give drivers relief as prices surged past $5 per gallon in some areas.

Among those efforts was legislation introduced by state Sen. Shirley Turner, D-Mercer, that would have temporarily rolled back a portion of New Jersey’s gas tax. Other lawmakers floated similar proposals aimed at easing financial pressure on commuters and working families.

None of those proposals ultimately became law.

Rep. Jeff Van Drew has called on Gov. Mikie Sherrill to suspend New Jersey's gas tax to give drivers some relief from high pump prices. (AP Photo/Mel Evans, File)

At 49.1 cents per gallon, New Jersey has one of the highest gas taxes in the nation, significantly higher than the federal tax now targeted by Trump and Van Drew.

Van Drew called on Gov. Mikie Sherrill to suspend the state gas tax to offer drivers even more relief.

However, none of the state legislators who previously called for suspending the gas tax during the pandemic have introduced new proposals.

Republicans have seized on that contrast, accusing Democrats of supporting tax relief only when politically convenient.

Will drivers actually see relief at the pump?

Whether Congress would approve a federal gas tax suspension remains unclear.

Even if legislation advances, economists remain divided on how much consumers would actually save. Some analysts say the relief could be modest and temporary, while others argue even small reductions matter for families already stretched thin by inflation and rising household costs.

As for suspending the state gas tax, there are no known efforts by the governor or Democratic leadership in the New Jersey Legislature to advance such a plan.

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