Governor Gavin Newsom of California is under increasing pressure to provide relief to residents grappling with the highest gas prices in the nation, especially after President Trump announced plans to temporarily suspend the federal gas tax.
On Monday, Trump stated he wanted to “remove the gas tax for a period of time,” though he acknowledged needing congressional support, labeling it a “great idea” for alleviating the financial strain on Americans.
In California, gas prices were reported at $6.16 per gallon on Monday, significantly exceeding the national average of $4.52, based on data from AAA. Yet, Newsom has no intention of mirroring Trump’s tax suspension.
Drivers in California already incur the highest gas taxes in the country, which include a 61-cent per gallon excise tax along with sales tax and various fees, while the federal gas tax stands at just 18 cents per gallon.
Representative Kevin Kiley, an independent with Republican leanings, expressed his support for all initiatives aimed at helping Californians facing rising gas prices. He noted that while a federal tax moratorium would be beneficial, the larger problem lies with California’s state taxes, which rank among the highest nationally.
Kiley went on to mention his introduction of the Gasoline Tax Cuts and Jobs Act aimed at limiting these taxes, calling for state leaders to abolish the 61-cent per gallon tax entirely.
Meanwhile, Newsom criticized Trump’s gas tax plans, dismissing them as a “gift” that would be of little help to consumers. He pointed out that working and rural citizens are disproportionately affected by the gas tax, which he described as regressive.
San Jose Mayor Matt Mahan, who is also a candidate for governor, echoed this sentiment, pushing for tax reforms. He questioned why Newsom hadn’t implemented a suspension when he had the chance.
The federal gas tax, established in the 1990s, generates approximately $40 billion annually for the Highway Trust Fund, which is responsible for funding road maintenance and construction. However, suspending it would likely require congressional approval.
Senator Josh Hawley from Missouri plans to introduce legislation to facilitate this when Congress reconvenes, a move echoed by Representative Anna Paulina Luna from Florida. On the Democratic side, Senators Mark Kelly and Richard Blumenthal had already proposed legislation in March to pause the gas tax.
Newsom’s office labeled Trump’s announcement a “distraction” and a “gimmick,” contending that it wouldn’t genuinely alleviate the situation for drivers. A spokesman criticized the federal gas tax as minimal compared to the real costs drivers face, attributing the rise in gasoline prices to issues beyond that, including factors like the Iran war.
Moreover, Newsom’s team emphasized that halting the gas tax would jeopardize funding crucial for road and bridge repairs, questioning whether fuel companies would actually pass on any cost savings to consumers. In a similar vein, Florida’s Governor Ron DeSantis has also resisted gas tax moratorium proposals, suggesting they might not substantially aid consumers.
Criticism from Trump’s former Interior Secretary, Doug Burgum, included remarks about Newsom contributing to energy instability while Californians contend with soaring gas prices.
Michelle Lyra, a California student, shared her frustration upon filling her gas tank, describing the situation as “outrageous” and unfair, particularly to working individuals.
California’s heavy reliance on foreign oil, coupled with the shrinking of major refineries, has left it more vulnerable to price fluctuations compared to other states, a situation further complicated by its commitment to achieving “net-zero” emissions by 2045.
Burgum commented that California’s predicament has been self-inflicted, predating current geopolitical conflicts. Newsom defended the state’s energy policies, indicating that fuel prices remain unchanged despite market volatility, and attributed some of the burden to federal actions under Trump relating to the Iran situation.
As for legislative action, the California Legislature has shown little willingness to consider a gas tax suspension, as evidenced by the swift rejection of an earlier proposal by Senator Tony Strickland earlier in March.
