States test relief strategies as pump pain haunts the midterms
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States are taking on the stubbornly high fuel prices squeezing Americans ahead of the midterm elections, pushing through tax holidays and other tactics to offer relief while federal efforts have stalled.
Why it matters: With November 3 less than 30 days away, the political stakes of those price-lowering levers — even if the relief is only modest — are surging amid sky-high costs.
- While several lawmakers have introduced legislation aimed at or pressed for suspending the federal gas tax, which is 18.4 cents per gallon for gas and 24.4 for diesel, Washington hasn't coalesced around a solution.
Driving the news: That's left states seeking ways to give their residents relief.
Case in point: Ohio Gov. Mike DeWine (R) signed a bill last week that suspends Ohio's gas tax for 90 days, an effort that earned bipartisan backing.
- There's an underlying election story: The state's Democratic gubernatorial candidate, Amy Acton, had called for a gas tax holiday, followed by her rival, Vivek Ramaswamy, announcing a plan with GOP leaders.
Flashback: Georgia was the first state to suspend its fuel taxes amid the war in Iran, with Republican Gov. Brian Kemp approving a 60-day pause back in March.
- Since then, at least five other states (including Ohio), have suspended, lowered or stopped increases in their fuel taxes. Kemp declared a state of emergency in late September and suspended the excise tax again for 30 days.
- Utah cut its gas tax by some 15% through the end of the year. Gov. Andy Beshear (D-Ky.) froze an expected increase in the gas and diesel taxes in May. Illinois suspended its set increase this summer for six months.
- Indiana Gov. Mike Braun (R) also suspended Indiana's gas tax in April. He renewed the suspension in late September and lifted restrictions on dyed diesel for farmers and timber harvesters.
Friction point: The Trump administration signaled openness to a gas tax holiday this spring, but Congress must suspend the levy. While the idea has been floated before, lawmakers have never done so.
- Suspending the taxes can bring some relief to consumers, but it wouldn't offset the spikes they've felt at the pump since the start of the war. Plus, critics note doing so could increase the deficit and hurt the Highway Trust Fund it fuels.
- But as Axios' Ben Geman noted back in May, political winds aren't always predictable — especially with drivers and truckers still feeling the strain months later, and as political messages cluster around cost-of-living concerns.
Zoom out: Other states have taken a similar approach to Braun by waiving seasonal and traditional restrictions for strained industries.
- For example, Alabama Gov. Kay Ivey (R) directed state law enforcement to stop enforcing rules against dyed diesel, usually reserved for off-road machinery and exempt from taxes, "to relieve the state's agricultural and timber communities."
- Louisiana, Nebraska, North Carolina, Oklahoma and Texas took similar action.
- Still, other states pursued different avenues for relief: California recently took action to permit cheaper, winter-blend gas to be sold earlier than usual, while Michigan allowed gas stations to sell lower-cost gasoline earlier this spring.
The bottom line: Even if a federal gas tax holiday remains unlikely, pump pain — and perhaps, the possibility of future political pain — is fueling state action.
Go deeper: Iran war drives $100 billion in extra energy costs for U.S. consumers
