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Proposal from Arkansas lawmaker calls for gas tax to be paused for 90 days

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Gas tax pause enters Arkansas debate

Arkansas drivers are watching fuel prices closely as a new proposal calls for a short pause in the state gas tax during a costly stretch for working families.

The plan would last 90 days and aims to give families quicker relief while pump prices keep adding pressure to household budgets, errands, commutes, and weekly routines.

A gavel on a table.

Lawmaker seeks a special session

Representative Kendon Underwood of Cave Springs wants Arkansas leaders to consider a special session focused on pausing fuel taxes for drivers, families, and businesses facing higher costs statewide.

He said the move could provide immediate breathing room for families who are trying to manage gas costs alongside groceries, bills, school needs, daily expenses, and savings.

Motorcycle being fueled by a person (closeup).

What drivers pay in state fuel tax

Arkansas currently charges 24.7 cents in state tax on each gallon of gasoline, according to the Department of Finance and Administration, as fuel costs rise for motorists.

The state also charges 28.5 cents per gallon of diesel, a cost that matters for truckers, delivery companies, farmers, commuters, small businesses, and shipping routes statewide for daily travel needs.

Anonymous man refueling his car holding a fuel pump nozzle.

Fuel costs hit daily choices

For many households, gas prices are not just numbers on a roadside sign. They shape work trips, school runs, errands, weekend plans, and family choices every week across Arkansas.

One Arkansas driver said he traded a truck for a car because filling up had become too expensive several times each week for his budget and schedule.

Coins in glass jar with saving retirement and emergency plan.

Families look for quick relief

Supporters of the proposal say a 90-day pause could help people who need savings right away, even if the change is only temporary, for drivers statewide and working households.

The idea speaks to families who feel squeezed by fuel, food, and other everyday expenses that leave less room in monthly budgets, emergency savings, and plans for basic needs.

Downtown area of Hot Springs, Arkansas.

Democrats show mixed reactions

Some Arkansas Democrats said they understand why drivers want relief, especially when fuel costs are making basic travel more difficult for residents across the state and working households.

Others argued the proposed pause would not go far enough, saying families facing high prices may need broader help than a short tax break during inflation for lasting relief.

Car's gas dispenser.

Diesel prices matter beyond truckers

Diesel costs can affect more than trucking companies because many goods move by truck before reaching stores, restaurants, farms, and local businesses across Arkansas and nearby markets.

When diesel gets more expensive, companies may face higher operating costs, and those pressures can eventually reach customers through higher prices, fees, or delivery charges across Arkansas communities.

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It's a beautiful day on the Arkansas riverfront.

Road funding creates a tradeoff

Fuel taxes help pay for transportation work across Arkansas, including road construction, maintenance, and improvements that keep traffic moving safely in many communities and rural areas.

Pausing the tax could help drivers at the pump, but it would also reduce money used for projects across the state for 90 days this summer, and for important repairs.

The driver is applying the car's brakes, causing the red lights at the rear to illuminate.

Transportation money could shrink

The Arkansas Department of Transportation says fuel taxes make up about 42% of its funding, making the proposed pause a major budget concern for officials across Arkansas.

Agency officials said a three-month suspension could mean about $90 million in lost revenue, which could affect planned work, contractor schedules, road projects, and highway maintenance needs.

Tax wooden letter and tax icon on wooden blockpay tax

Contractors could feel the impact

Transportation officials warned that losing fuel tax money could force the state to tell contractors to stop work during the 90-day pause, affecting active projects and schedules.

That concern raises another side of the debate, because road crews, suppliers, and local projects may depend on steady transportation funding to keep moving across Arkansas communities statewide.

Driver's-eye view of a car interior on the motorway.

Drivers question real savings

A state gas tax pause could lower the tax portion of each gallon, but drivers may still notice changing market prices at stations across their communities and travel routes.

That means savings could depend on fuel prices, station pricing decisions, and how quickly any tax pause reaches customers at the pump in practice for everyday motorists.

Female politician gesturing at microphone.

Proposal faces political hurdles

Calling a special session is not automatic, and the proposal would need support from state leaders before any tax pause could happen in Arkansas during the debate.

Lawmakers would have to weigh quick savings for drivers against transportation funding needs, project delays, and the limits of short-term relief for families statewide over the 90 days.

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Aerial view of Hot Springs, Arkansas, USA.

Arkansas weighs relief and roads

The proposal captures a familiar problem for many states, as leaders look for ways to ease fuel costs without weakening public services or transportation systems during price spikes.

For Arkansas, the question is whether a 90-day pause offers enough relief to justify the pressure it could place on road funding and projects across Arkansas communities.

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What do you think a 90-day gas tax pause could mean for Arkansas drivers? Share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

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