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Market Chatter: US Lawmakers Weigh Gas Tax Freeze as Fuel Prices Reach $4.50/Gal

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US lawmakers are considering a temporary federal gas tax freeze as gasoline prices reached $4.50 per gallon this week, Bloomberg reported Tuesday.

House Speaker Mike Johnson reportedly said lawmakers are reviewing a possible suspension of the federal gasoline tax, calling the proposal an "intriguing idea," according to the report.

"You have to look at any unintended consequences and evaluate all that, so I'm not yet ready to project it," Johnson told Bloomberg Government.

US President Donald Trump backed the idea on Monday and said he wants to pause the 18.4-cent federal gas tax until fuel market conditions improve, the report added, citing CBS News.

Drivers could save about 10 cents to 16 cents per gallon under the proposal.

"It's a conversation that we're willing to have," Senate Majority Leader John Thune said, while warning that suspending the federal gas tax could reduce funding for the Highway Trust Fund.

The federal gasoline tax currently helps fund US highway and bridge projects.

Republican Senator Josh Hawley introduced legislation that would suspend federal gasoline and diesel taxes for 90 days and allow another 90-day extension.

Democratic Senators Richard Blumenthal and Mark Kelly have also supported a temporary fuel tax freeze as higher energy prices continue to strain household budgets, the report said.

"Trump wants to give real relief to Americans? End the damn war," Senate Democratic Leader Chuck Schumer said, adding that an 18-cent reduction per gallon would not provide meaningful relief for consumers.

The US House of Representatives didn't immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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