President Trump has proposed a temporary federal gas tax holiday to combat high gasoline prices, but the plan faces challenges. Key facts: The tax waiver would save drivers at most 18.4 cents per gallon, but only about 13-16 cents may reach consumers.
Reduced revenue would worsen the Highway Trust Fund's $17 billion shortfall, leading to more pothole damage. The gas tax is outdated, not raised since 1993, and electric vehicles further erode its base.
Alternative funding methods like mileage fees are being considered but not adopted.