State Actions on Fuel Taxes in 2026
In response to a more than $1.50 increase in average U.S. gasoline prices between February and May 2026, the Trump administration proposed suspending the federal gasoline excise tax to provide consumer relief.
While federal gas tax holidays have been considered before, none have been enacted. Research suggests consumers typically receive less than the full value of gas tax reductions through lower pump prices. A few states have implemented temporary gas tax relief, including Illinois, Indiana, Kentucky, and Utah. Illinois paused its motor fuel tax through December 31, 2026, while Utah temporarily reduced its gas tax by about 15 percent. Other states, including Vermont, oppose gas tax holidays, arguing the revenue is needed to support transportation infrastructure and public services.
This data is updated as of June 22, 2026
