Republicans pivot to emergency gas tax holiday, affordability agenda as soaring prices anger voters

Soaring inflation, rising gasoline prices and collapsing housing costs have pushed congressional Republicans to urgently enact affordability measures as they face an increasingly disgruntled electorate that could force them out of the majority after November.

Lawmakers are considering a suspension of the federal gas tax and a sweeping housing reform bill after arriving on Capitol Hill Tuesday amid alarming economic news: Consumer prices rose 3.8% from a year earlier in April, the highest annual rate since May 2023.

“Obviously, this is a problem that all Americans face. And in some cases, the circumstances are beyond their control,” Senate Majority Leader John Thune, Republican of South Dakota, told the Washington Times.

Republicans banded together at a closed-door Senate luncheon to move toward an affordable affordability agenda amid growing blame for the rapidly rising cost of living. A CNN poll showed that 77% of Americans, including a majority of Republicans, believe President Trump’s policies have increased the cost of living in their communities.

“We’re very focused on affordability,” Sen. John Hoeven, Republican of North Dakota, said after lunch.

Even though President Biden and congressional Democrats were responsible for a massive federal spending spree that boosted inflation three years ago, the blame for the latest price hikes falls squarely on Mr. Trump and congressional Republicans.

The soaring costs of energy, food and housing are largely linked to the war in Iran, which is in its third month. The conflict has virtually closed the Strait of Hormuz, a major chokepoint for oil, fertilizer and other goods. The transit disruptions caused gasoline and fertilizer prices to spike, and the impact rippled through the U.S. economy.

Democrats were happy to point the finger at Republicans, whom they accused of launching a costly “war of choice” without a clear strategy or exit plan.

“Prices are rising, families are hurting, and Americans know exactly who is making it worse,” said Senate Minority Leader Charles E. Schumer, Democrat of New York.

Facing an increasingly angry electorate, Republicans are scrambling to keep up with the high costs.

Sen. Josh Hawley, Republican of Missouri, introduced a bill this week to temporarily suspend the federal gas tax of 18.4 cents per gallon. Senators are also pressuring the Republican-led House to pass Senate-passed legislation aimed at increasing the nation’s housing stock.

Congress must approve a federal gasoline tax exemption, but it has never agreed to one since the tax was created in 1932 to fund highway projects.

The idea nevertheless gained traction this week among Republicans, building on legislation introduced by Democrats in March, as gas prices rose to an average of $4.52 per gallon.

“We recognize that there are short-term difficulties here,” Mr. Hoeven said. “I think people have an open mind.”

Mr. Thune and other Republicans interviewed by The Times stressed the need to reopen the Strait of Hormuz, which would allow cargo ships to pass through and quickly ease pressure on crude oil prices. A barrel of Brent crude oil rose from around $72 in late February, when the war broke out, to $108 on Tuesday.

Meanwhile, Republicans are focused on legislation that would address the high cost of housing, which Thune said “strikes at the very heart of affordability.”

Republicans met with Mr. Trump at the White House on Monday to drum up support for a Senate-passed measure that would boost affordable housing construction by overhauling and modernizing housing regulations and environmental reviews, and cutting red tape that slows housing construction.

The measure would also impose new restrictions on large investors, making it harder for them to acquire single-family homes, a practice that has driven up prices and reduced inventory.

After meeting with Senate Republicans, Mr. Trump boosted the Senate housing bill on his social media accounts. He called on the House to pass the bill, which he said would “ensure housing is for people, not businesses.”

The nation’s growing affordability crisis has kept some Republicans from rubber-stamping the White House’s $1 billion funding request for additional security infrastructure. Part of the funding request concerns security for the planned White House ballroom, an ornate structure that Democrats oppose even though it is privately funded.

Few Republican senators were willing to commit Tuesday to including the $1 billion request in an upcoming budget reconciliation bill, even after a private briefing from Secret Service Director Sean M. Curran.

“It’s pretty expensive, obviously,” Sen. Tommy Tuberville, Republican of Alabama, said after the briefing.

Democrats relished the opportunity to turn the request for $1 billion in funding for White House security into a campaign talking point by tying it directly to the new ballroom.

“At the very time Americans are demanding relief, Republicans are telling them to pay for Trump’s palace first,” Mr. Schumer said. “They have nothing for the American people and a ballroom for Donald Trump.”