US State Lawmakers Push Gas Tax Cuts Amid Iran War
Lawmakers in West Virginia and Illinois are proposing fuel tax suspensions to provide consumer relief as gas prices spike following the start of a war with Iran.
State legislators in West Virginia and Illinois are seeking to suspend fuel taxes to mitigate the impact of skyrocketing gas prices caused by a conflict between the United States and Iran. In West Virginia, Sean Hornbuckle and House Democrats proposed a "gas tax holiday" that would pause the 35.7 cent per gallon excise tax in 30-day increments if wholesale prices exceed February 2026 levels. To cover the resulting $30 million to $40 million monthly loss to the state Road Fund, Hornbuckle suggested using the state's Rainy Day Fund.
While West Virginia's push is bipartisan, the West Virginia Freedom Caucus urged Governor Patrick Morrisey to bypass a costly special legislative session by issuing an emergency order to suspend the tax for 90 days. Governor Morrisey stated he is open to ideas to lower costs but emphasized the need for responsible budgeting and protecting road funding.
Similarly, in Illinois, State Representatives Ryan Spain and Regan Deering introduced legislation to pause the state's 5% gasoline sales tax for six months, from July 1 to December 31. Representative Spain argued that the measure is justified because funds were diverted from downstate roads to Chicago-area transit. However, the administration of Governor JB Pritzker rejected the proposal, blaming President Donald Trump's policies for destabilizing global oil markets and asserting that the primary solution is ending the war in Iran.
