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The Dictatorship

Trump says he’ll move to suspend federal gas tax. He’ll need Congress

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Trump says he’ll move to suspend federal gas tax. He’ll need Congress

WASHINGTON (AP) — President Donald Trump said Monday he will move to suspend the federal tax on gasoline to help Americans shoulder surging fuel prices caused by the Iran war.

The president cannot suspend the federal tax on his own. Congress would have to approve the move.

Lawmakers from both parties have pushed for a gas-tax suspension, saying it would provide much-needed relief for families and businesses that rely on their cars and trucks to get to work and school and run everyday errands.

As of Monday, the average national gas price was $4.52 a gallon, according to the AAA motor club, 50% higher than the average price of just under $3 a gallon before Trump began the war against Iran.

AP AUDIO: Trump says he’ll move to suspend federal gasoline tax. He can’t do it on his own

AP Washington correspondent Sagar Meghani reports President Trump says he’ll move to suspend the federal gasoline tax, as Americans struggle with high prices due to the Iran war.

What the gas tax supports

The federal tax is currently set at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel, an amount that does not include state taxes, which often are higher. The tax provides more than $23 billion per year in revenue for federal highway and public transit programs.

Asked by reporters at the White House how long the tax should be suspended, Trump said, “Until it’s appropriate.” While the tax is only a small percentage of the price of gas, “it’s still money,” Trump said.

As gas prices have spiked, the Trump administration has released millions of barrels of oil from the U.S. Strategic Petroleum Reserve and temporarily lifted sanctions on some Russian and Iranian oil shipments already at sea. The U.S. is negotiating with countries reliant on Middle East crude to join a coalition to police the Strait of Hormuzwhere about one-fifth of the world’s traded oil normally flows.

Trump needs Congress — and they’re beginning to react

Republican Sen. Josh Hawley of Missouri said on social media Monday that he will introduce legislation to suspend the gas tax. Democrats have previously sponsored similar legislation. Rep. Anna Paulina Luna, R-Fla., also said in a post on X that she will introduce a bill “to suspend the federal gas tax in light of Trump’s recent remarks.”

Senate Majority Leader John Thune said Monday he has not “been a fan” of a gas tax suspension, but added: “You know, I’ve got some colleagues out there who think it’s a good idea. So, we’ll hear them out.’’

Thune, a Republican from South Dakota, said he’d prefer to reopen the Strait of Hormuz to “normalize gas prices” without legislation. “Obviously, any time you suspend the gas tax, that leaves a big hole in the highway trust fund, which also has implications down the road,” he said.

Sen. Rand Paul, R-Ky., said that “instead of suspending the tax, we should suspend the war.”

The ongoing spike in gas prices has set off alarms among some Republicans that it could hurt the party’s chances in the midterm elections.

Sen. John Cornyn, who is in a tough runoff race later this month to keep his seat, said he wants to know how roads and bridges would be paid for if the tax is lifted. But he said there’s a “difference between a temporary suspension and a permanent suspension.”

“A temporary suspension to get through this sort of bumpy time because of the uncertainty about energy prices, I could live with that,” he said.

Trump has previously said higher fuel prices are worth paying to prevent Iran from getting a nuclear weapon. That hardline message appeared to soften Sunday as Energy Secretary Chris Wright said the Trump administration was “open to all ideas,” including a suspension of the gas tax, during an interview on NBC’s “Meet the Press.”

A bill sponsored by Democratic Sens. Richard Blumenthal of Connecticut and Mark Kelly of Arizona would suspend the federal tax through Oct. 1. A similar measure was sponsored in the House by Democratic Rep. Chris Pappas of New Hampshire.

“Trump’s war of choice with Iran is driving up gas prices across the country — and Americans shouldn’t have to bear the additional economic burden of Trump’s reckless decision making,” Blumenthal said in introducing the bill.

Kelly told reporters Monday he still prefers his legislation but would take “whatever we can get at this point.”

“People need relief,” he said.

Several states, including Indiana and Georgia, have recently suspended their taxes to alleviate high prices amid the war. Kentucky and Utah have reduced their state tax. Other states are weighing similar suspensions or tax reductions.

There are drawbacks, industry group says

The gasoline tax is the single largest source of revenue for federal highway and public transit programs.

While proposed bills would offset any lost Highway Trust Fund revenue with general funds, the tax suspension could raise the federal deficit and jeopardize the long-term sustainability of investments for highway and public transit programs, according to the American Road & Transportation Builders Association, which represents the transportation construction industry.

The group cites studies showing that many retailers do not pass on the full amount of the gas tax reduction to consumers. Research also suggests that state and federal gas taxes are just one component of a complex pricing scheme that includes the global price of oil and other factors.

___

Associated Press writers Kevin Freking and Steven Sloan in Washington contributed to this story.

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The Dictatorship

Court denies request to immediately block DOJ ‘slush fund’

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Court denies request to immediately block DOJ ‘slush fund’

A federal judge in Washington has denied a bid Wednesday brought by a watchdog group to immediately block the Justice Department’s “anti-weaponization” fund, for now choosing to trust the department’s assertions that it is not moving forward with the fund.

U.S. District Judge Richard Leon ruled immediately, denying Citizens for Responsibility and Ethics in Washington’s request for a temporary restraining order that would have blocked the Department of Justice from taking steps to create the fund.

Throughout the 30-minute hearing, the DOJ reiterated that the administration was not moving forward with the nearly $1.8 billion fund, which seeks to compensate individuals who allege they have been politically targeted or victimized by the DOJ.

Andrew Block, the only lawyer present for the government, repeatedly cited Acting Attorney General Todd Blanche’s June 2 congressional testimonyin which he said the administration was “not moving forward” with plans to create the fund.

Leon indicated he agreed with the DOJ’s position that the case appeared to be moot, saying he was not persuaded there was an issue for the court to decide regarding the creation of the fund. He issued a stern warning to the DOJ, saying, “Don’t play possum with this court!” — meaning he does not want to be deceived.

The plaintiffs argued Blanche’s testimony did not amount to an official cancellation. Nikhel Sus, CREW’s attorney, said Blanche “refused to memorialize that rescission,” or in other words, put it in writing. Sus said that was “highly unusual.” Leon responded, “This whole case is highly unusual to say the least.”

Leon asked the government twice why they would not just rescind the order that established the fund. Block responded, “I don’t know,” and pointed again to Blanche’s public statements about the fund’s future.

Both Leon and Sus raised the issue of Trump’s continued public defense of the fund. “It can still be an important issue and also not moving forward,” Block said. “That isn’t a direction to move forward with the fund.”

Although Leon rejected CREW’s bid for an immediate block, he indicated he is still considering its request for a longer-term block against the fund.

A block order from a separate federal judge in Virginia remains in effect until at least Friday.

Fallon Gallagher is a legal affairs reporter for MS NOW.

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Trump is accelerating our Social Security insolvency crisis

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The date when Social Security’s trust fund is expected to run out of money just got bumped up. The fund is now projected to empty in 2032according to a new report released by Social Security’s trustees.

The new depletion date isn’t an earth-shaking change — it’s only a quarter earlier than the estimate in last year’s report. But it illustrates how President Donald Trump’s policies are degrading a program he promised to never jeopardize — and accelerating an approaching crisis in how our government will assist the elderly and disabled.

The report names three factors that contributed to the earlier insolvency date. One is a declining fertility rate, but the other two drivers can be traced back to Trump: a drop in immigration into the country, and the “substantial effect” of the tax policies in the One Big Beautiful Bill he signed last summer.

Trump’s acceleration of the program’s insolvency comes atop his assaults on the program’s administrative capacities.

Reduced immigration during Trump’s second term — especially when coupled with a declining fertility rate — strains Social Security because the program is funded through payroll taxes. Those come out of people’s paychecks, and fewer workers supporting an aging population means the program receives less revenue. Indeed, Social Security already has been tapping its trust fund for the better part of the past two decades because the program’s costs have exceeded its cash income. And as the Center on Budget and Policy Priorities pointed out last yearlast year’s tax cuts were a boon to the rich but a bust for the solvency of the Social Security trust fund.

To be clear, if the fund is depleted, Social Security won’t go belly up. Benefits will continue to be paid out, but there will be a large drop in the amount. The Committee for a Responsible Federal Budget estimates that the “average monthly cut would total $500, which is more than what the average retired household spends on groceries each month.”

That would be a huge blow to the budgets of many older Americans. Social Security is a major source of income for most retirees, and roughly 40% of beneficiaries over the age of 65 rely on it for most of their income. And it would mark the destabilization of the sole source of retirement security for most Americans that is supposed to be insulated from ups and downs — unlike 401K plans. As the CBPP has pointed outSocial Security is “most workers’ only source of guaranteed retirement income that is not subject to investment risk or financial market fluctuations.”

Trump’s acceleration of the program’s insolvency comes atop his assaults on the program’s administrative capacities. His cuts to the Social Security Administration have left offices understaffedincreased wait timesand reduced quality of customer service.

Ultimately, Trump is exacerbating a colossal social safety net problem that predates him, and the trust fund will hit dire straits after he has left office. Democrats need to have clear plans for shoring up the program and making it robust for the future — which will require not being sheepish about taxes as a tool for renewing the social contract. And when Republicans try to claim that they, too, are champions of Social Security, all Democrats need to do is point to the truth.

Zeeshan Aleem is a writer and editor for MS NOW. He primarily writes about politics and foreign policy.

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Wednesday’s Mini-Report, 6.10.26

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Wednesday’s Mini-Report, 6.10.26

Today’s edition of quick hits.

* The latest from Northern Ireland: “The family of a man who lost an eye in a knife attack appealed for ​calm on Wednesday after the incident triggered a wave of anti-immigrant violence in Belfast overnight, with masked men burning families out of their homes and torching vehicles. The appeal ‌came as a Sudanese man appeared in court charged with attempted murder and as British Prime Minister Keir Starmer and politicians in Northern Ireland condemned the violence by ‘masked thugs’ that had targeted ethnic minorities.”

* In related news: “The British government hit out at X owner Elon Musk Wednesday, accusing him of whipping up tensions online ahead of disorder in Belfast.”

* The tenuous state of a dubious ceasefire: “Trump said the U.S. is going to hit Iran ‘hard’ today when pressed by reporters in the Oval Office about his statement earlier that Tehran will ‘pay the price’ for taking ‘too long’ to reach a peace agreement. ‘Well, we’re going to be attacking them and attacking them very hard, resuming bombing,’ he said.”

* The latest casualty figures from Lebanon: “Israel’s military offensive in Lebanon has killed at least 3,666 people, including 131 healthcare workers, and injured more than 11,300 since the U.S. and Israel began their war with Iran in late February, the Lebanese health ministry reported yesterday.”

* The changing nature of modern warfare: “Ukraine is wreaking havoc on unarmored trucks and trains in the battlefield’s rear, using drones with upgraded engines and batteries, integrated Starlink communication systems and new artificial-intelligence capabilities. The ramped-up attacks are causing fuel shortages, complicating troop rotations and reducing Russian military activity on the front.”

* This seems like a reasonable request: “Democrats on the House Intelligence Committee demanded Wednesday that Bill Pulte, President Donald Trump’s controversial pick for acting director of national intelligence, submit to a full security check before assuming the post, including an examination of his financial holdings and foreign contacts.”

* Some market trends can’t be stopped despite the White House’s best efforts: “Even as President Donald Trump boosts coal over clean energy, solar power is hitting new milestones in the U.S. and remains the leading source of new power. Data released Wednesday by global energy think tank Ember, along with a report by the Solar Energy Industries Association and analytics firm Wood Mackenzie, show the continued growth of solar and decline of coal in the United States despite federal policy. In May, for the first time, solar supplied more of the nation’s electricity than coal, or 12.8%, Ember said.”

* A bizarre schedule for a nonemergency vanity project: “Federal officials are laying more groundwork to begin construction on President Donald Trump’s planned 250-foot-tall triumphal arch, sharing additional documents that detail the project’s scope and an aggressive timetable for potentially completing work before Trump’s term ends. According to National Park Service documents posted this month, the administration envisions 20 hours per day of construction on the arch, year-round, in hopes of completing the project within two to three years.”

See you tomorrow.

Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”

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