(NewsNation) — A California congressman facing an updhill reelection bid is pushing a nationwide cap on state gasoline taxes while conceding the real driver of fuel prices is the U.S. war in Iran.
Rep. Kevin Kiley’s “Gas Tax Reduction Act,” introduced last month, would withhold federal funds from states that impose a gasoline tax of more than 50 cents a gallon. The average state gas tax across the U.S. is 33 cents a gallon, with California charging the most — 61 cents a gallon — of any state.
Kiley, previously a Republican who has switched his party affiliation to independent, told “Elizabeth Vargas Reports” on Friday that gasoline prices won’t fall until after the Trump administration wraps up the conflict in Iran so that the Strait of Hormuz can reopen.
Do gas tax holidays actually bring relief at the pump?
But he added: “The least we can do is try to provide a little relief using the most immediate lever we have.”
Kiley has called for his home state to suspend its gasoline tax, but Democratic Gov. Gavin Newsom has rejected the idea of a so-called gasoline tax holiday that other states have approved. California currently has the highest average gasoline price in the nation — $6.14 a gallon, according to AAA.
It’s not only state governments that impose a gasoline tax, usually to fund road improvements and infrastructure. The federal government levies its own 18.4 cents-a-gallon tax on gasoline. President Trump recently expressed support for lifting the tax, but he would need congressional approval.
Kiley, who is from the Sacramento area, is running for reelection under a new congressional map drawn by Democrats. His switch to independent is widely seen as a bid to improve his chances. His gas-tax bill is in committee.
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