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Arkansas lawmaker proposes temporary suspension of state gasoline and diesel taxes in effort to provide short term relief for drivers facing rising fuel costs

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Little Rock, Arkansas – A new proposal in the Arkansas legislature is pushing for a temporary pause on the state’s fuel taxes, a move supporters say could bring quick relief to drivers facing rising costs at the pump.

Kendon Underwood, a Republican lawmaker representing District 16, announced Thursday that he is seeking a 90-day suspension of Arkansas’ state gasoline and diesel taxes. The plan targets the state’s 24.7-cent-per-gallon gasoline tax and 28.5-cent diesel fuel tax, which together form a significant portion of fuel costs for consumers and businesses.

Underwood said he is also asking Governor Sarah Huckabee Sanders to call a special legislative session so lawmakers can consider and vote on the proposal. He said he intends to circulate a letter to members of the Arkansas General Assembly in hopes of building support quickly across party lines.

The proposal comes at a time when fuel prices remain a concern for many households, especially those in rural parts of the state where driving is a daily necessity rather than a choice. Underwood argues that even modest price increases at the pump can ripple into higher costs for groceries, transportation, and housing.

Read also: Arkansas Governor Sarah Huckabee Sanders announces major funding package supporting six county unpaved road projects across rural communities

“The dramatic spike in gas prices is putting a tremendous burden on the people of Arkansas,” Underwood said. “It’s making it much more difficult for hardworking taxpayers to afford basic necessities like food and housing.”

The plan mirrors a broader national conversation about fuel taxes, as some lawmakers in Washington have also floated the idea of temporarily suspending the federal 18-cent gasoline tax. Former President Donald Trump has publicly said he would support such a move, adding political momentum to similar efforts at the state level.

Underwood believes a short-term suspension could provide immediate relief while lawmakers continue working on longer-term solutions to affordability. He has encouraged Arkansas residents to contact their representatives and express support for the proposal, saying public pressure could help push the plan forward.

The idea of suspending fuel taxes, however, is expected to raise questions about how the state would make up for lost revenue during the 90-day period. Fuel taxes are typically used to fund road maintenance, infrastructure projects, and transportation programs, meaning any pause could have implications for ongoing construction and repair work.

So far, Governor Sanders has not committed to calling a special session but has signaled openness to reviewing the idea. A spokesperson for the governor said the administration will examine the proposal carefully before making any decisions.

Read also: Conway meeting draws large crowd of residents demanding clearer answers on proposed billion dollar AI data center near Lollie Road development site

“Governor Sanders takes affordability seriously, which is why she eliminated Arkansas’ grocery tax and cut taxes four times in four years to lower Arkansas’ income tax rate by 25%.” he said. “The Governor will continue to explore all responsible options that actually bring down costs and keep Arkansas the number one state in the nation for lowest cost of living.”

Supporters of the proposal say the temporary suspension would act as a short-term cushion for families, truck drivers, farmers, and small businesses that depend heavily on fuel. They argue that even a few cents per gallon can add up significantly over time, especially for high-mileage users.

Critics, however, are expected to question whether a temporary tax cut would provide meaningful long-term relief or simply delay funding challenges for infrastructure projects that rely on fuel tax revenue.

Still, Underwood says the urgency of current fuel prices justifies immediate action. He described the proposal as a practical step to ease pressure on households while broader economic conditions stabilize.

As discussions continue, Arkansas lawmakers may soon face a broader debate over how to balance tax relief with infrastructure funding needs — and whether a 90-day suspension is a temporary fix or a risky tradeoff for the state’s transportation system.

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