Trump Wants To Pause Federal Gas Tax. Here’s What NJ Is Doing

President Donald Trump is looking to suspend the federal gas tax to combat rising gas costs due to the war in Iran. The Garden State, however, does not plan on doing the same.

Specifically, Trump wants to temporarily nix the 18.4-cent-a-gallon federal tax on gasoline in an attempt to bring down pump prices. This would save citizens around four percent in gas costs, given that the national average was $4.51 per gallon as of Wednesday.

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Governor Mikie Sherrill says that the gas tax is necessary for New Jersey infrastructure, calling the decision to keep it in place “strategic and thoughtful.”

“This is a disaster and crisis created by the President of the United States. He got into a war that he cannot explain. He can’t seem to get himself out of it. He has no strategy, and now costs are going through the roof,” Sherrill said. “At every turn we’ve seen costs going up… (Trump) is really putting incredible cost pressure on the backs of people across this country, and certainly here in New Jersey.

“We are going to keep running a strategic and thoughtful government here,” she added. “The gas tax is how we invest in infrastructure going forward.”

In New Jersey, the average regular gas price is $4.52 per gallon as of Wednesday, barely higher than the national average, according to AAA. The exclusion of the federal gas tax would make the average New Jersey price around $4.34 per gallon, still significantly higher than the average this time last year, which was $2.98 per gallon.

Trump still needs congressional approval to go through with the tax suspension. Similarly, even if Sherrill wanted to pause the gas tax in New Jersey, she would need legislative approval.

Some states have already taken measures to suspend the gas tax, including Utah, Georgia, and Indiana. Lawmakers on both sides of the aisle in other states, including Missouri and Florida, have expressed interest in doing the same.

However, civil engineers in both New Jersey and across the country have expressed concern over the gas tax suspension, citing a lapse in funding for infrastructure.

The New Jersey-based Utility and Transportation Contractors Association (UTCA) called the “gas holiday” a “gimmick.”

“A federal gas tax holiday could potentially cripple the nation’s ability to fund critical infrastructure projects. Meanwhile, there is little to no evidence that it would result in any meaningful benefit to Americans,” said UTCA Chief Executive Officer David Rible. “A gas tax holiday is more gimmick than actual relief. It would take us backwards without addressing affordability issues. The last thing New Jersey needs is another Gateway-style fight that puts critical federal funding at risk. We need every single New Jersey congressional representative to forcefully oppose this.”

Experts warn that gas and oil prices will continue to rise for the foreseeable future, even if the war in Iran were to end tomorrow.