Early Monday morning, President Biden said he is considering suspending the federal gas tax as White House officials work to lower the cost of gas before the Fourth of July holiday.
Officials at the White House say the July 4 weekend is a good time to announce plans to lower gas prices after a record-high month since many Americans are expected to be on the road.
Biden hinted that the temporary suspension of federal gas tax might be made by the end of the week.
He said, “I hope I have a decision based on data.”
There would need to be congressional action for a gas tax holiday, and one White House official acknowledged that it would not be easy.
“Republicans don’t want gas prices to come down,” the official said. “They want Biden to suffer.”
A gas rebate is one of the other possible moves the administration is contemplating, but one White House official described the concept as “a stretch” and “not in serious contention.” While a gas tax holiday seems to be gaining traction, officials say one of the remaining concerns is how long it would last.
According to sources, the move to reveal new regulations comes ahead of a meeting Energy Secretary Jennifer Granholm expects to have with oil refining CEOs on June 23.
On CNN on Sunday, Granholm said that if the administration moves on with a federal gas tax freeze, specific federal funding allocated to road improvements under the infrastructure law could be diverted.
“If we remove the gas tax, that takes away the funding that was just passed by Congress to be able to do that,” she said. “So, you know, that’s one of the challenges, but I’m not saying that that’s off the table.”
