WASHINGTON — The 2026 tax filing season closed Wednesday with the Trump administration and Republicans on Capitol Hill hailing success under last year’s massive tax cuts law, while Democrats said any benefits have been wiped out by skyrocketing gas prices, inflation and more.

More than 53 million Americans claimed at least one new benefit, averaging a tax cut of $800, under the tax cuts and spending package passed by congressional Republicans and enacted by President Donald Trump on July 4, according to the Department of the Treasury.

Originally titled the One Big Beautiful Bill Act, but rebranded by Republicans as the Working Families Tax Cuts law, the measure made permanent Trump’s 2017 reduced tax brackets. 

It also quadrupled the state and local tax deduction cap and increased the child tax credit by $200.

Democrats marked Tax Day by criticizing the law and pointed to increasing inflation and tariff costs as wiping out the value of tax relief, as both sides try to gain the advantage in messaging ahead of crucial midterm elections that will determine control of Congress.

Tips, car loans, overtime

The new law cut taxes on tips until 2028 and on qualifying car loan interest until 2029. 

As for Trump’s campaign promise for no tax on overtime, the law applies the advantage on up to $12,500 in overtime earnings for individuals, and $25,000 for joint filers, through 2028. 

Additionally, eligible senior citizens can now deduct up to $6,000 for individuals, $12,000 for couples, until 2029.

Treasury Secretary Scott Bessent said in a Tax Day statement that Trump’s leadership upholds “the foundational principle that hardworking Americans should be rewarded, not punished with tax hikes, and the results of this tax season prove it.”

According to Internal Revenue Service statistics to date and made public Wednesday:

• Six million filers claimed no tax on tips, with an average deduction of $7,100.
• Twenty-five million filers claimed no tax on overtime, averaging a $3,100 deduction.
• Thirty million seniors claimed the enhanced senior deduction, receiving an average break of $7,500.
• One million Americans deducted car loan interest, getting a $1,800 break on average.

Bessent, acting IRS commissioner after a turnover of six IRS commissioners in 2025, said the agency has “worked tirelessly to ensure our tax system works for the people it is meant to serve.”

“From the shop floor to the kitchen table, taxpayers are feeling the difference of the largest tax cuts in our nation’s history, and millions of Americans are keeping more of what they earn and seeing their paychecks go further than ever before,” Bessent said.

The White House circulated a collection of statements from taxpayers Tuesday praising the new deductions. 

Trump also held a photo opportunity Monday, when he received a McDonald’s delivery from a self-proclaimed “DoorDash Grandma” who lauded tax relief on her tips in a planned event. Trump subsequently pulled cash from his pocket and handed it to the woman, Sharon Simmons of Arkansas, who represented the tech delivery service. 

Simmons, no newcomer to such GOP appearances, also testified before the U.S. House Ways and Means Committee in late July 2025, following the passage of the tax law, to praise the no tax on tips policy.

134 million income tax returns

Frank Bisignano, IRS chief executive officer, told Senate tax writers on Capitol Hill Wednesday that the 2026 filing season was the “most successful tax filing season in IRS history.”

Trump created the IRS CEO position last year. Bisignano also serves as the commissioner of the U.S. Social Security Administration.

“This landmark legislation forms the cornerstone of the administration’s growth agenda. The latest numbers tell the story,” Bisignano told the Senate Committee on Finance during the panel’s annual oversight hearing examining tax collection.

The agency to date has seen over 134 million income tax returns filed for 2025 earnings, with 98% of them done electronically, according to IRS data. Bisignano hailed the issuance of 80 million refunds that on average totaled $3,400, up by 11% compared to 2024. 

Senate Democrats on the panel panned the cost of the new tax regime and questioned whether a shrinking IRS staff will contribute to less enforcement. 

Sen. Michael Bennet, D-Colo., said “the lack of cops on the beat at the IRS is going to cost the Treasury in the United States $646 billion in unpaid taxes by the wealthiest people in America.”

According to reports, roughly 26,000 employees left the IRS last year as part of Trump’s civil service reduction incentives and firings.

“I remember you saying when you and I met before your confirmation that you are deeply concerned about the level of national debt in this country,” Bennet said to Bisignano. “It is $38 trillion and a lot of that is because of the completely unpaid-for tax bill that is the Trump tax bill.”

The cost of the tax bill will be realized in years to come, according to congressional scorekeepers.

The nonpartisan Congressional Budget Office and Joint Committee on Taxation estimated the law will cost $3.4 trillion over the next 10 years —  more than $4 trillion if accounting for interest that will accumulate on the nation’s debt.

An analysis by the Tax Foundation, which generally advocates for lower taxes, found tax revenue coming into U.S. coffers will drop by nearly $5.2 trillion over the next decade. Individual income taxes have been the government’s largest single source of revenue since 1944, according to data compiled by the Tax Policy Center, a partnership between the Urban Institute and Brookings Foundation.

How the tax cuts were offset

Lawmakers who wrote the massive tax law accounted for some of the lost revenue by overhauling eligibility and work requirements for government health and food assistance for low-income Americans. 

According to a recent report from the progressive Center on Budget and Policy Priorities, roughly 2.5 million Americans have lost Supplemental Nutrition Assistance Program, or SNAP, benefits since the tax law came into effect.

The CBO estimated the law’s changes to work requirements for Medicaid, the government’s low-income health care program, will result in millions of Americans losing health insurance. 

Senate Republicans defended the law, saying it helped Americans by avoiding “the largest tax increase in American history.”

“Had the 2017 tax cuts expired, taxpayers earning less than $400,000 would have faced a more than $2.6 trillion tax hike over the next decade,” said Senate Finance Committee Chair Mike Crapo, R-Idaho. 

Pilot program canned

The panel’s highest-ranking Democrat, Sen. Ron Wyden, D-Ore., slammed the new law for terminating a free alternative for tax filing, IRS Direct File, enacted under former President Joe Biden’s own budget reconciliation megabill.

The limited pilot program offered a free filing portal directly through the IRS and was available to 19 million taxpayers in 2024.

“Direct File in America died on Mr. Bisignano’s watch,” Wyden said, adding the program’s termination again puts taxpayers at the mercy of “tax software giants who overcharge for a service that ought to be free.”

Rather, the IRS offers Free File, an option available to taxpayers under a certain income level, now capped at $89,000, via a handful of tax preparation software companies that contract with the federal government.

A 2019 Treasury Inspector General for Tax Administration report described the program as “fraught with complexity and confusion.” Estimates show roughly 14 million free-file-eligible taxpayers were led to pages where they were prompted to pay for add-ons and extra services.

Taxpayers at any income level have the option to file for free via fillable PDF forms, but that option requires manual entry without guided prompts.

Wyden said the arrangement is a “multi-billion dollar rip-off.”

Bisignano called Direct File an “unnecessary and less popular duplicate of programs.”

Dems continue ‘affordability’ argument

The Democratic National Committee pounced on Tax Day to highlight Trump’s policies and use of taxpayer funds. Affordability is front and center in the upcoming midterm elections.

Though Trump campaigned on lowering prices and taxes, DNC Chair Ken Martin said in a statement the president has so far given Americans “a reckless trade war that has hiked prices, and a deadly and costly taxpayer-funded war with Iran.”

“This Tax Day, Americans are seeing lower-than-promised refunds hit their bank accounts that won’t even cover the higher costs Trump has forced them to shoulder. It couldn’t be clearer: Trump and the Republican Party are on the side of billionaires, big corporations, and wealthy special interests,” Martin said.

WASHINGTON — Spikes in energy prices caused by the U.S.-Israeli war in Iran drove up inflation for Americans in March, according to the latest consumer price index figures released Friday.

Costs jumped 0.9% in March compared to the previous month — that’s up from the 0.3% increase in February. 

Prices for all items together, including food, energy, shelter and other commodities like vehicles, rose by 3.3% from a year ago. That’s the highest annual jump since May 2024, according to Bureau of Labor Statistics historical data. 

Fuel costs drove the spike, with gasoline and fuel oil together rising 10.9% in March compared to the previous month. Singled out, gas prices jumped 21.2% in March. The cost for airfare, largely driven by jet fuel prices, rose 2.7% in March, up from the 1.4% jump in February.

President Donald Trump launched the joint war in Iran with Israel on Feb. 28. In response to the intense bombing campaign that killed the country’s supreme leader and numerous senior officials, the Iranian regime effectively closed the Strait of Hormuz, a narrow passage in and out of the Persian Gulf vital to the transport of one-fifth of the world’s petroleum.

As of Friday, Americans were paying $4.15 on average nationwide for a gallon of regular gas, according to AAA. The average for diesel across the U.S. is $5.68 per gallon.

Prior to the war, a gallon of regular hadn’t topped $3 all year.

Iran’s de facto takeover of the Strait of Hormuz by threatening to strike any tankers, other than a handful from friendly countries, has caused the largest supply disruption in the history of the global oil market, according to the International Energy Agency.

Despite a tenuous ceasefire agreed to Tuesday evening Eastern time, Iran is still controlling the strait. Ten oil tankers transited the waterway Tuesday, and only one on Wednesday, according to the latest figures available from the Joint Maritime Information Center, which tracks tankers and cargo ships worldwide that are transmitting location data.

Prior to the war, roughly 140 vessels daily flowed freely through the Strait of Hormuz.

Dems pounce on affordability issue

Democrats blamed Trump Friday for higher inflation, as affordability is emerging as perhaps the single-most important issue ahead of the 2026 midterm elections in November that will determine control of Congress.

Democratic National Committee Chair Ken Martin said the president is “pushing working families to the brink.” 

“Trump promised to ‘lower prices on Day One,’ and instead he waged an unhinged trade war and started an unpopular war with Iran — and what have Americans gotten in return? Nothing except even higher prices. Americans are sick and tired of this president putting his own interests first and using their hard-earned dollars to fund his war instead of making health care more affordable or expanding access to child care,” Martin said in a statement Friday morning.

White House senior deputy press secretary Kush Desai responded to the inflation figures, saying the president “has always been clear about short-term disruptions as a result of Operation Epic Fury, disruptions that the Administration has been diligently working to mitigate.”

“Although gas and energy prices are seeing volatility, prices of eggs, beef, prescription drugs, dairy, and other household essentials are falling or remain stable thanks to President Trump’s policies. As the Administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid trajectory thanks to the Administration’s robust supply-side agenda of tax cuts, deregulation, and energy abundance,” Desai wrote in a statement Friday morning posted on social media. 

Other costs

The price index for food consumed at home decreased 0.2% compared to the previous month, but increased 1.9% from a year ago. 

The costs of fruits and vegetables rose 1% in March compared to the previous month, but prices for meat, poultry, fish and eggs declined 0.6%, according to the latest BLS figures.

The price index for items minus food and energy rose 0.2% in March, matching the increase in February. The cost of all items, less food and energy, rose 2.6% over the past 12 months.

WASHINGTON — The White House defended skyrocketing gas prices Tuesday as a “short-term disruption” during the ongoing war in Iran, as Secretary of Defense Pete Hegseth said the administration will not “foreclose any option” in the conflict, including boots on the ground.

Briefing publicly for the first time since March 19, Hegseth said it will be “the president’s determination alone” when the war objectives are complete and the “upcoming days will be decisive.” Hegseth also said the administration’s negotiations with Iran are “ongoing, they’re active, and, I think, gaining strength.”

Five weeks in, the war continues to rock economies across the globe and at home, where the national average for gasoline hit $4 a gallon for the first time in four years, according to data from AAA.

White House press secretary Karoline Leavitt released a statement saying that “When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions.” 

President Donald Trump, she said, “remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families.”

Shortly after the White House issued its statement, Iran’s parliament speaker, Mohammad-Bagher Ghalibaf, posted a link on X to a CNN article about soaring U.S. gas prices, writing “Sad, but this is what happens when your leaders put others ahead of hard-working and ordinary Americans.”

Blockade drives up global prices

Iran’s blockade on U.S. and allied ships at the Strait of Hormuz, a major passage for petroleum and liquid natural gas, has wreaked havoc on global energy markets. As of Tuesday at 12:45 p.m. Eastern, Brent crude oil, the international standard, was trading just over $119 a barrel.

Between 2,000 and 3,000 cargo vessels and oil tankers, along with roughly 20,000 crew, remain stuck in the Persian Gulf, according to the United Nations and open source data, including MarineTraffic. 

Trump claimed during a Cabinet meeting Thursday that Iran has agreed to allow eight to 10 Pakistani oil tankers through. On Sunday, the president said 20. 

According to the Joint Maritime Information Center, only four large tankers transmitting location data had crossed the Hormuz Strait on Friday and Saturday. 

US troops

Hegseth said the White House will not rule out any options, including ground operations, but declined to provide detail at the Pentagon briefing.

“You can’t fight and win a war if you tell your adversary what you are willing to do, or what you are not willing to do — to include boots on the ground. Our adversary right now thinks there are 15 different ways we could come at them with boots on the ground. And guess what? There are. So if we needed to, we could execute those options on behalf of the president of the United States and this department, or maybe we don’t have to use them at all. Maybe negotiations work,” Hegseth said. 

Trump told reporters Sunday on Air Force One that negotiations with Iran are happening “directly and indirectly” and are “very good.”

“We’re doing extremely well,” the president said. “But you never know with Iran because we negotiate with them, and then we always have to blow ‘em up.”

Trump has repeatedly threatened to bomb Iran’s energy infrastructure, and has set a self-imposed deadline of April 6 to do so if Iran doesn’t meet his demands.

On Monday night, the president posted on his social media platform, Truth Social, a video of a U.S. strike on an ammunition depot in Iran’s central province of Isfahan. 

Spokesperson for the Iranian Foreign Ministry Esmaeil Baqaei denied any talks with the United States, according to Iranian state media Tasmin New Agency.

Up to 3,500 U.S. Marines and sailors arrived in the region Saturday, according to U.S. Central Command. The U.S. now reportedly has roughly 50,000 troops in the region — that’s 10,000 up from the usually 40,000 or so peacetime members of the armed forces stationed there. 

Ghalibaf said Sunday an American ground offensive would result in “severe punishment,” according to state media.  

More than 300,000 American troops were in the region during the U.S. ground invasion of Iraq, according to historical data archived by the Council on Foreign Relations.

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Gas prices in Wisconsin averaged above $5 a gallon in six southeastern counties in early June 2022.

According to the travel organization AAA’s page for Wisconsin, the statewide average gas price was $4.923 on June 12, 2022 – a record high that hasn’t been seen since.

Still, individual Wisconsin counties and metro areas exceeded $5 a gallon – a different measure than the statewide average.

A web archive of the same AAA page captured on June 16, 2022, showed the average price was above $5 in six counties, including Milwaukee County at $5.144.

Gas prices fluctuate for many reasons. Prices spiked in 2022, when Russia’s invasion of Ukraine pushed up crude oil prices, per the U.S. Energy Information Administration.

Former Gov. Scott Walker called back to 2022 prices in the wake of U.S. strikes on Iran, which bumped prices past $3.50 in late March.

This fact brief is responsive to conversations such as this one.

Sources

• AAA: Fuel Prices for Wisconsin
• AAA: Fuel Prices in Wisconsin (2022)
• U.S. Energy Information Administration: U.S. retail gasoline prices rose in summer but ended 2022 lower than start of 2022

Did gas prices in Wisconsin top $5 a gallon in June 2022? is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Gas prices are climbing again across the United States — with little clarity on where prices are headed next — spurring proposals for state gas tax holidays in the hopes of offering drivers some relief.

The national average hit $3.96 per gallon Monday, up from $3.72 the week before, according to the U.S. Energy Information Administration. A month ago, the average price per gallon was $2.79.

Some analysts warn prices could continue climbing in the coming weeks, potentially pushing the national average above $4 per gallon for the first time since 2022.

Data from AAA, a national travel and motorist organization, shows a similar upward trend for both regular gas and diesel.

While the Energy Information Administration no longer publishes detailed data for every state, regional figures show increases across much of the country. The West Coast, Central Atlantic states and Rocky Mountain region are seeing some of the highest average prices, with California, Colorado and Washington among those experiencing the largest recent increases.

Rising gas prices are putting renewed pressure on household finances, especially for low- and middle-income Americans who have less flexibility to absorb higher transportation costs. The increases can ripple through daily life, influencing how much people drive, where they travel and how they spend money elsewhere.

Still, economists say the most significant factor right now is not just the price itself, but the uncertainty surrounding it. With national policy decisions and geopolitical developments in the Middle East shifting rapidly, there is little consensus on how long prices will remain elevated or how high they could climb.

“Gasoline prices don’t live in isolation,” said Steven Durlauf, an economist at the University of Chicago’s Harris School of Public Policy. Durlauf also is the director of the university’s Stone Center for Research on Wealth Inequality and Mobility. “Reductions in the supply of petroleum, oil-based products affect the entire economy.”

States weigh gas tax holidays

With prices rising, local leaders and state lawmakers in several states — including California, Connecticut, Florida, Georgia, Maryland and Utah — have weighed gas tax holidays as a way to provide relief at the pump.

Georgia lawmakers have already enacted a temporary suspension, while officials in Florida and Maryland have expressed skepticism, citing budget constraints and questions about how much savings would actually reach consumers.

Gas prices have risen across all of these states, with some of the sharpest increases in the South.

Gas tax holidays, which temporarily suspend or reduce state fuel taxes, gained traction in 2022 when gas prices last topped $4 per gallon. Supporters say they can offer immediate, visible relief by lowering the per-gallon cost of fuel.

But researchers and some economists say the benefits are often limited and uneven. A new analysis from the Institute on Taxation and Economic Policy, a left-leaning tax policy research group, estimates that the recent rise in gas prices is on pace to cost American drivers an additional $9.4 billion per month.

The researchers found that gas tax holidays may provide only minimal relief to those who need it most. For households earning less than $53,000 a year, a federal gas tax holiday would save about $5 per month on average.

Some research suggests that much of the benefit from such policies may not reach consumers at all. When fuel supply is constrained, a significant share of the savings can be absorbed within the oil and gas supply chain rather than passed on at the pump.

State-level examples reflect similar patterns. In Georgia, analysts from the Institute on Taxation and Economic Policy found that the state’s newly enacted tax holiday is expected to cost the state about $196 million per month and disproportionately benefit wealthier households: The bottom 60% are expected to receive just 22% of the tax cuts — or roughly $13 per family, according to the ITEP analysis.

Utah lawmakers have spent a year planning for a 15% cut in the state’s gas tax from July through December. But some economists say any savings for consumers might be engulfed by higher prices.

“It’s still unclear the extent people will notice that tax cut,” Phil Dean, chief economist at the Kem C. Gardner Policy Institute at the University of Utah, told the Utah News Dispatch.

There are also fiscal trade-offs. Gas taxes are a key source of revenue for transportation infrastructure, and suspending them — even temporarily — can strain state budgets, particularly in places where revenues have fallen in recent years.

Some experts say more targeted approaches, such as direct income rebates or assistance aimed at lower-income households, may be more effective in offsetting rising fuel costs without reducing transportation funding.

“A tax holiday is, I think, something most economists would be uncomfortable with,” said Durlauf, the University of Chicago economist.

If the consumer demand is still there, gasoline prices might still rise, he said. “It’s not obvious to me that the prices will not just adjust to (gas tax holidays) as well.”

Global tensions

Much of the recent volatility stems from the Trump administration’s war in Iran and uncertainty surrounding the Strait of Hormuz — a critical global oil transit route through which a significant share of the world’s oil supply passes. Iran has effectively restricted access to some vessels in the region, raising fears of supply disruptions that can quickly ripple through global markets.

Even the threat of disruption can send oil prices higher, as traders react to the possibility of reduced supply.

Though the United States produces substantial amounts of oil domestically, it remains part of a global market, meaning international developments still directly affect prices at the pump.

“Americans can’t fence themselves off from the impacts of global changes to supply and demand,” said Patrick De Haan, a petroleum analyst at GasBuddy, a fuel savings and price-tracking company. “Actions have consequences, and consumers are very much feeling that.”

Crude oil remains the single biggest driver of gasoline prices, accounting for about half of the cost of a gallon of regular gas, according to the Energy Information Administration. Refining makes up about 20%, while distribution and marketing account for 11%, and taxes roughly 18%.

Brent crude oil — the international benchmark — has surged in recent weeks, briefly reaching $119 per barrel last week. It settled around $100 per barrel on Monday, and rose again on Tuesday to about $113 per barrel.

Federal forecasts expect prices to remain elevated in the near term before easing later this year.

Seasonal factors are also contributing to the increase. As warmer weather approaches, refineries transition to producing summer-blend gasoline, which is more expensive to manufacture but designed to reduce evaporation and meet environmental standards.

Warmer weather also usually means more drivers will be on the road.

“The oil industry is volatile. It’s a global market, and that’s why we don’t predict what’s going to happen next because it’s impossible to,” said Aixa Diaz, a spokesperson for AAA. “This all coincided at a time when gas would normally be going up anyway for us.”

At its core, gasoline pricing reflects basic supply and demand dynamics. When supply tightens — or is expected to — prices rise. When demand falls, prices tend to drop, sometimes sharply.

“Whenever there’s a perceived shift in either supply or demand, there’s going to be an equal reaction,” De Haan said. “This is just one of the larger reactions, because it’s a larger impact.”

The recent spike has also been fueled by rapidly shifting political signals. President Donald Trump said Monday that the United States is in talks with Iran to resolve the conflict, helping to briefly push oil prices lower after they surged amid Trump’s threats to target Iran’s energy infrastructure. Iran denied there were ongoing talks.

Such volatility, economists say, adds another layer of uncertainty that can weigh on both consumers and the broader economy.

Stateline reporter Amanda Watford can be reached at ahernandez@stateline.org.

The U.S. Environmental Protection Agency will allow gas stations to sell a blended fuel containing 15% ethanol into the summer season in an effort to lower gas prices, Administrator Lee Zeldin said Wednesday.

The blend, known as E15,  is usually barred in many Midwest states over the summer to reduce smog, though the federal government has routinely in recent years issued waivers to allow summer sales. The move, which ethanol producers applauded, could prevent a spike in prices at the pump during the war with Iran that has scrambled oil markets.

“EPA is working with our federal partners to reduce unnecessary costs and uncertainty and ensure that gas prices remain affordable for all Americans through the summer,” Zeldin said in a statement. “This emergency action will provide American families with relief by increasing fuel supply and consumer choice.”

Bipartisan officials in corn-producing states had sought the waiver, and continue to push for year-round availability of the product. Ethanol is manufactured from corn and other plant materials.

Move wins praise from industry, officials 

Seven Midwestern governors — Republicans Kim Reynolds of Iowa, Mike Kehoe of Missouri, Jim Pillen of Nebraska and Larry Rhoden of South Dakota and Democrats Tim Walz of Minnesota, JB Pritzker of Illinois and Tony Evers of Wisconsin — signed a March 6 letter to Zeldin requesting the waiver.

More recently, the top Democrat on the U.S. Senate Agriculture Committee also endorsed the move.

“With gas prices spiking, now’s the time to make E15 available year-round,” Minnesota U.S. Sen. Amy Klobuchar, said in a March 19 statement. “It will help lower costs and decrease our dependence on foreign oil.”

U.S. Rep. Adrian Smith, a Nebraska Republican, also applauded Wednesday’s announcement, and called on Congress to make the policy permanent.

Ethanol industry groups also approved of the waiver. Geoff Cooper, the president and CEO of the national ethanol advocacy group Renewable Fuels Association, said the move was “exactly what the supply chain needs right now.”

“President Trump and Administrator Zeldin understand that year-round E15 is a solution that can extend domestic fuel supplies and reduce pump prices for hardworking American families,” Cooper said. “With geopolitical conflict roiling energy markets worldwide, we applaud President Trump and Administrator Zeldin for acting quickly and decisively to combat potential fuel shortages and help keep a lid on gas prices this summer.”

Iowa Renewable Fuels Association Executive Director Monte Shaw also thanked the administration in a statement.

“With rising fuel prices and a war in the Middle East, this is the worst time to force retailers to bag E15 pumps. E15 adds home-grown supply and reduces prices for consumers,” he said.

Iran war disrupts oil market

Gas prices have risen since President Donald Trump launched strikes against Iran on Feb. 28. Transport through the Strait of Hormuz has been limited due to threats from Iran during the conflict.

White House press secretary Karoline Leavitt noted at Wednesday’s press briefing the waiver was a part of the administration’s response to rising fuel costs during the war.

“Obviously the administration is coming up with creative new solutions by the day to keep the price of oil stable, something the president wants to see,” she said.

Trump will also welcome nearly 1,000 farmers to the White House for a National Agriculture Day event on Friday, where the president plans to promote his record on the issue, Leavitt said.

The E15 waiver will be in effect May 1 through May 20. Twenty days is the longest period a single waiver can be applied under the Clean Air Act, the EPA said in the press release. The move signals the administration views further waivers as an option as restrictions ramp up over the summer.

Shauneen Miranda contributed to this report. 

WASHINGTON — Electricity rates “increased significantly” in nearly every U.S. state in 2025, with residents in a dozen states seeing at least a 10% jump, according to a congressional report released by Democrats Tuesday.

Minority members of the Joint Economic Committee released state-by-state figures from monthly utility bill data showing, on average, American households paid roughly $110, or 6.4%, more for electricity in 2025, compared to 2024. 

The analysis came amid other gloomy economic headlines, including a steep increase in gasoline prices since the U.S.-Israeli war in Iran began, and a lousy jobs report last month.  

States that saw the highest spikes included New Jersey, 16.9%; Indiana, 16.3%; Illinois, 15.9%; Pennsylvania, 12.1%; Kentucky, 11.8%; Maryland, 11.6%; Tennessee, 11.6%; New York, 11.4%; Ohio, 11.1%; Missouri, 11%; Maine, 10.6%; and Washington state, 10.3%. 

The District of Columbia topped the list with an increase of 23.5%, according to the two-page report.

Rates dropped by 18% in Nevada, 3.1% in California, 2.4% in Hawaii and 1.6 % in Arizona.

Campaign pledge

Democrats on the committee pointed to President Donald Trump’s campaign promise to slash electricity costs, among other prices, by half.

Affordability is a key issue ahead of the 2026 midterm elections in November that will determine control of Congress. Trump has repeatedly referred to the issue of affordability as a “hoax.”

“American families don’t need a report to tell them that the President has broken his campaign promise to slash energy costs; they already feel the impact of President Trump’s actions every single day. But this report is yet another indication that sky-high costs are continuing to rise — and are continuing to hurt American families,” the committee’s ranking member, Sen. Maggie Hassan, D-N.H., said in a statement.

The committee pulled the electricity bill data from the federal Energy Information Administration.

 

 

As of December, the majority, by far, of electricity in the United States is generated by natural gas. Next in generation are nuclear power and coal, followed by wind, conventional hydroelectric and solar, according to the Energy Information Administration. 

Experts and economists challenged Trump’s campaign promise to cut domestic energy costs by expanding U.S. drilling, highlighting petroleum is priced on a global, not local, market, as noted in an October 2024 report by FactCheck.org.

 

 

Trump recently gathered tech CEOs in the Oval Office to sign a symbolic “ratepayer protection pledge” meant to combat rising energy costs due to AI data center demand. 

“It’s a big deal; it’s going to have a tremendous impact on electricity costs… Under this new agreement, Big Tech companies are committing to fully cover the cost of increased electricity production required for AI data centers — and that would mean prices for American communities will not go up, but in many cases, will actually come down,” Trump said.

Gasoline prices, too

The Bureau of Labor Statistics reported a 4.8% increase in electricity costs over the past 12 months, according to the consumer price index for February. The report showed energy services overall rose 6.3% year over year as piped gas utility costs spiked 10.3% since February 2025.

Expenses overall rose 2.4% over the past year, according to the latest figures, continuing to exceed the Federal Reserve’s target of 2%. 

But nowhere has a price increase been more noticeable in recent days than at the gas pump.

Gas prices nationwide averaged just under $3.72 Monday — that’s up from $2.93 one month ago, according to AAA. 

Roughly one-fifth of the world’s petroleum products have been choked off as Iran continues to effectively close the Strait of Hormuz with threats to shell any oil tankers passing through, except for a few negotiated trips.

The U.S.-Israeli war in Iran began Feb. 28.

WASHINGTON — Americans are paying more for gas Monday as the U.S.-Israeli war with Iran chokes off a significant route for roughly one-fifth of the world’s petroleum products.

Global prices for Brent crude oil, the international standard, climbed over $100 a barrel. Prices were just above $70 a barrel in the days before the U.S. and Israel launched a surprise Feb. 28 attack on Iran, killing the regime’s top leader and other powerful government figures.

The spike, which peaked at $119.50 per barrel early Monday, caused ricochets throughout markets, with major stock indexes falling worldwide. Oil prices have not reached costs above $100 per barrel since mid-2022 after Russia launched its full-scale invasion in Ukraine.

Following the Feb. 28 strikes, Iranian officials effectively closed the Strait of Hormuz, threatening and reportedly attacking vessels attempting to cross the narrow passage.

Iran’s top security official, Ali Larijani, reinforced on the social media platform X Monday that vessels trying to cross the Strait of Hormuz are not guaranteed safety as the conflict continues.

“It is unlikely that any security will be achieved in the Strait of Hormuz amid the fires of the war ignited by the United States and Israel in the region,” Larijani wrote.  

President Donald Trump defended the price spike late Sunday in a post on his online platform, Truth Social. 

“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY! President DJT,” he wrote.

While the price fell to $90 a barrel just before 6 p.m. Eastern, Patrick De Haan of GasBuddy, a platform that helps people find the cheapest gas prices in their region, said without indications on the direction of the conflict, there’s no guarantee the price will continue to drop.

“It’s hard to know what (prices) will look like, and there’s not a whole lot of clarity on whether or not the administration is actively trying to address the problem that has caused oil to spike,” De Haan told States Newsroom. 

The price of oil dropped below $90 just after Trump said Monday afternoon that the war was “very complete” during a phone call with CBS News’s Weijia Jiang. 

But prices bumped back up.

“There’s just a lot of headlines, there’s a lot of interest, and there’s a lot of volatility in the situation,” said De Haan, head of petroleum analysis at GasBuddy, said.

U.S. gas prices 

The national average for gasoline in the U.S. rose to $3.48 per gallon Monday, according to the AAA gasoline price survey. That’s up from $3.25 per gallon on March 5, according to the survey. 

AAA data shows consumers in Pennsylvania, Michigan and Illinois experienced the highest prices in the Midwest and eastern U.S., with average retail prices ranging from $3.52 to nearly $3.60 for a gallon of regular gas.

Western states, which tend to pay higher gas prices already, saw an average gallon of regular surpass $4. California topped the nation’s list at $5.20 per gallon.

The price to fill up in Arkansas, Kansas and Oklahoma remained the lowest, hovering between $2.92 to $2.99. That’s up from a week ago when prices averaged $2.47 in Oklahoma, $2.57 in Kansas and $2.61 in Arkansas.

Spike among “fastest rates in years”

GasBuddy put the national average Monday of regular at $3.45, and diesel at just over $4.59.

“In just a week, consumers have seen gasoline prices surge at one of the fastest rates in years after oil prices spiked following U.S. strikes on Iran and the effective closure of the Strait of Hormuz,” De Haan said.

De Haan added in a blog post Monday that the reason behind oil prices pushing past $100 a barrel for the first time in years is “fuel markets are now rapidly recalibrating to the risk of prolonged disruption to global supply flows.”

“As a result, gasoline prices in many states could climb another 20 to 50 cents per gallon this week, with price-cycling markets potentially seeing increases as early as today,” De Haan said.

Prior to the war, average U.S. gas prices sat just under $3, with expectations for seasonal increases as warmer weather triggers more demand and refineries produce pricier summer blends.

The national average price of a gallon of regular gasoline topped $3 Tuesday for the first time this year, and is expected to keep going up.

The average price Tuesday was $3.11, up about 11 cents from Monday, according to AAA.

“The pump reaction is not only underway — it’s accelerating,” said Patrick De Haan, head of petroleum analysis for GasBuddy, which tracks prices.

Increases were already on tap even before Saturday’s U.S.-Israel strikes at Iran, as warmer weather usually means more demand and refiners start producing a summer-blend product.

But the attack adds new, powerful momentum to the price surge. The war makes it tough to forecast how long any increases will last or how big they could be. Recent experience does offer some hope that any big spike won’t last.

“While oil markets continue to react to potential tensions in the Middle East, history has shown that the price increases are temporary and quickly fall back,” said Joseph Brusuelas, chief economist and principal at the consulting firm RSM US, on his Real Economy Blog.

President Donald Trump, speaking at a news conference with German Chancellor Friedrich Merz on Tuesday, sought to justify the strikes and said any price hikes would be temporary.

“People felt it’s something that had to be done,” he said. “So if we have a little high oil prices for a little while, but as soon as this ends, those prices are going to drop, I believe, lower than even before.”

Immediate market reaction

The market reaction to the Iran war so far has been swift.

Brent crude oil, considered the global standard, topped $80 a barrel early Monday, up from the low 70s last week.

Some analysts saw prices having the potential to go as high as $100 a barrel.

“The forecasts are wide-ranging from over $100/barrel to lower prices this week on new Iraqi oil hitting the market,” said Matt McCall, founder of NXT Wave Research, an investment and market analysis firm, in a tweet. “I see a spike to start the week…and then it depends on the longevity of the war. A quick war and oil does not stay elevated. What is almost certain is volatility.”

The surge in oil prices fueled an overall slide in U.S. stock markets Tuesday, with the Dow Jones Industrial Average down nearly 2% around midday.

Prices up across states

The increases were felt in state after state Tuesday, according to the AAA gasoline price survey.

The nation’s lowest gasoline prices tend to be in the South, from roughly Mississippi to Texas.

The price of a gallon of regular in Oklahoma, the least expensive of any state, was $2.62 Tuesday, up from about $2.47 Monday.

Other changes in the lowest price states:

• Mississippi: $2.64 Tuesday, $2.55 Monday.
• Kansas: $2.70 Tuesday, $2.57 Monday.
• Arkansas: $2.70 Tuesday, $2.61 Monday.
• Louisiana: $2.72 Tuesday, $2.58 Monday.
• Tennessee: $2.72 Tuesday, $2.61 Monday.
• Kentucky: $2.73 Tuesday, $2.63 Monday.
• Texas: $2.74 Tuesday, $2.62 Monday.

The highest-priced gasoline tended to be in Western states. California has in recent years topped the price chart, and did again Tuesday at $4.67 per gallon, up about 1.7 cents a gallon from Monday.

California’s higher prices are the result of several special factors. It has tough environmental standards, and the state has more trouble compensating for refinery shutdown from interstate pipelines.

It’s more difficult for California to make up refinery shortages from interstate pipelines because of its location.

Other Western states have localized reasons prices stay high, and they tended to be less volatile because of the strikes. Some of the higher state averages Tuesday:

• Hawaii: $4.40 Tuesday, $4.38 Monday.
• Washington: $4.38 Tuesday, $4.37 Monday.
• Oregon: $3.95 Tuesday, $3.92 Monday.
• Nevada: $3.73 Tuesday, $3.70 Monday.

Future prices uncertain

The future path of prices depends on some huge unknowns. The biggest could involve the fate of the Strait of Hormuz, where the Iranians can exercise control. One-fifth of the world’s oil passed through there in 2024, according to the U.S. Energy Information Administration.

The strait is “one of the world’s most important oil chokepoints,” EIA said. Iranian officials said Tuesday the strait is closed, CNBC reported.

Most Iranian oil goes to China. Canada is the top importer of U.S. oil, followed by Mexico and Saudi Arabia, according to EIA. The U.S. sells more oil than it imports.

A prolonged change in Strait of Hormuz activity, or even the threat of change, is arguably already affecting oil prices. 

“Even without a sustained blockade, the new risk of closure is already changing behavior,” De Haan said. He listed ship rerouting, war-risk insurance premiums going up and “freight markets bracing for significant cost increases.”

Bottom line, he said: “Most drivers should prepare for gradual increases this week.”