Staff Reports
Washington, D.C. – U.S. Senators Mark Kelly (D-AZ) and Richard Blumenthal (D-CT), along with Representative Chris Pappas (D-NH-01), have introduced legislation aimed at providing immediate relief to American drivers facing sharply higher gasoline prices. The Gas Prices Relief Act, unveiled Monday, would temporarily suspend the federal excise tax on gasoline through Oct. 1, 2026, in response to a rapid surge in pump prices attributed to the ongoing U.S.-Israel conflict with Iran.
The bill targets the 18.4 cents-per-gallon federal gas tax, which sponsors say would directly lower costs at the pump by approximately that amount per gallon. It includes provisions to ensure the tax suspension benefits consumers rather than oil companies, directing the Secretary of the Treasury to monitor compliance and use available authorities to prevent profiteering. To safeguard infrastructure funding, the legislation requires the Treasury to transfer equivalent funds from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund, maintaining support for road repairs and environmental programs during the pause.
The move comes as gas prices have spiked dramatically in recent days. According to the American Automobile Association (AAA), the national average price rose 48 cents in the past week to $3.48 per gallon. In Arizona, prices climbed even steeper—up 54 cents to $3.85 per gallon—placing the state among the top 10 most expensive markets nationwide. The increases are widely linked to instability in global energy markets caused by the war in Iran, which began with joint U.S.-Israel airstrikes in late February and has disrupted oil supplies, including through the Strait of Hormuz.
Senator Kelly, a lead sponsor, tied the price hikes directly to the conflict. “Families across Arizona are dealing with high costs on almost everything, and now gas prices are skyrocketing because Donald Trump started a war with Iran,” Kelly said. “Arizona families shouldn’t pay the price for Donald Trump’s bad decisions. Suspending the federal gas tax would help bring prices down and give families some much-needed relief.”
Senator Blumenthal echoed the criticism, calling the war a “war of choice” and emphasizing the need to shield consumers from its economic fallout. “Trump’s war with Iran is driving up gas prices across the country—and Americans shouldn’t have to bear the additional economic burden of Trump’s reckless decision-making,” Blumenthal stated.
Representative Pappas, who will introduce companion legislation in the House, highlighted the broader pressures on families. “As Granite Staters continue to grapple with high costs on groceries, housing, and health care thanks to this administration, the last thing they need is to pay even higher prices at the gas pump as a result of Donald Trump’s war in Iran,” Pappas said. He noted the bill’s accountability measures for oil companies and expressed gratitude to Kelly for leading the Senate effort.
The proposal arrives against the backdrop of escalating tensions in the Middle East. President Trump has described the military operation as a “short-term excursion” with “tremendous success” already achieved, though Iranian officials have pushed back, insisting they will determine the conflict’s end. Oil prices have fluctuated wildly, with crude benchmarks surging in recent days before some pullback, contributing to volatility at U.S. pumps.
Democrats argue the tax suspension offers targeted, immediate relief without long-term impacts on federal revenue streams for transportation. Critics of past similar proposals have raised concerns about potential deficits or inadequate pass-through of savings, but the bill’s monitoring requirements aim to address those issues.
The full text of the Gas Prices Relief Act is available on Senator Kelly’s website. The legislation faces an uncertain path in a divided Congress, with potential partisan debates over its framing and fiscal implications amid the ongoing war.
