Boston, MA – Governor Maura Healey introduced a proposal on Tuesday to suspend Massachusetts’ 24‑cent‑per‑gallon gasoline tax for a two‑month period. The measure, which would be placed in a supplemental budget bill, is intended to provide immediate relief to motorists as gasoline prices average $4.41 per gallon, up sharply from $3.10 a year ago.
Rationale and fiscal safeguards
Healey argued that the ongoing war in the Middle East, now in its second year under President Donald Trump, has driven fuel costs up 50 percent for Massachusetts drivers. “People in America need relief, and as governor, I want to do what I can to give relief to people here in Massachusetts,” she said at the State House press conference.
The governor emphasized that the tax holiday would be time‑limited and funded by surplus revenue from the state’s 4 % surtax on high earners, often called the Fair Share tax. “We have that revenue coming in,” Healey said. “This is not going to disturb anything that funds transportation or transportation projects.”
Legislative response
House Speaker Ron Mariano, a longtime opponent of suspending the gas tax, called the idea “fiscally irresponsible,” noting that the war has no clear end and that the tax is a critical source of transportation funding. He warned that a suspension would limit the Commonwealth’s ability to finance critical infrastructure projects.
Senate President Karen Spilka offered a neutral statement, expressing gratitude for Healey’s focus on cost‑of‑living issues and indicating she will review the proposal with Senate colleagues when the supplemental budget reaches the chamber.
Political context
Republican gubernatorial candidate Mike Minogue has also called for a gas tax suspension, framing his proposal as a permanent solution that would be triggered whenever prices rise above $4 per gallon. In a recent television ad, Minogue stood at a pump and said, “Massachusetts charges the gas tax whether you’re paying two bucks a gallon or five… I’m proposing a gas tax holiday until prices stabilize.”
Mariano dismissed Minogue’s plan as a “desperate attempt to distract voters from the source of the problem,” arguing that eliminating the tax would jeopardize transportation funding while doing little to lower costs for residents.
Financial impact
The two‑month holiday is projected to reduce state revenue by about $120 million. Over the past decade, the 24‑cent tax has generated roughly $660 million to $775 million annually and produced about $704 million in fiscal year 2026, according to comptroller records.
Doug Howgate, president of the Massachusetts Taxpayers Association, acknowledged the understandable desire for relief but warned of the long‑term implications for transportation bonds. “The gas tax is pledged towards infrastructure bonds. When we sell bonds one of the ways we’re able to get a good price is they’re backed by the gas tax,” he said. He noted that Healey’s proposal includes two mechanisms to address those concerns: a limited duration and back‑filling the shortfall with surtax dollars.
Next steps
Healey said she has spent weeks working with her administration to examine the state’s revenue picture and the mechanics of a suspension, including its impact on transportation funding and bond obligations. She added that the governor’s office has already consulted the attorney general’s office about authority to address price‑gouging if the tax is suspended.
The proposal now heads to the Legislature, where both chambers will need to approve any temporary suspension. If approved, the tax holiday could provide short‑term relief to drivers while preserving the financial foundation for Massachusetts’ transportation system.
Original reporting: NBC10 Boston — read the source article.
