Two Nashville Democrats are trying to give Tennessee drivers a temporary break at the pump, and they want it baked straight into the next state budget. On Tuesday, House Democratic Caucus Chair John Ray Clemmons and State Rep. Bo Mitchell said they will push for a short-term suspension of the state’s gas and diesel taxes, arguing it could help cushion families and commuters from rising fuel costs. Their plan, to add a tax holiday to the governor’s proposed 2026–27 spending plan, sets the stage for a quick budget fight in the coming weeks.
As reported by WSMV, Clemmons and Mitchell plan to hold a press conference to press for a "gas and diesel tax holiday" in Gov. Bill Lee’s executive budget for 2026–27. That coverage cites AAA figures showing pump prices climbing through March, with Tennessee drivers still paying less than the national average but more than they were at the start of the month. WSMV noted that a station crew would be on hand at the Capitol to capture details and reaction.
What Drivers Would Actually Save
Under current state law, Tennessee’s gasoline privilege tax is 26 cents per gallon and the diesel use tax is 27 cents per gallon. A full suspension would trim roughly that amount off each gallon, directly chopping the per-gallon price on every fill-up. Those rates are spelled out in the Tennessee Department of Revenue motor fuel manual. For most drivers the savings would be clearly visible on the receipt, though still relatively modest compared with the day-to-day swings in wholesale fuel prices.
Relief Or Just A Rounding Error?
At today’s prices, cutting something in the neighborhood of a quarter per gallon would be real relief, but not a total game-changer for families filling up week after week. According to AAA Fuel Prices, the national average hovered near $3.98 per gallon on March 24, with earlier reporting putting Tennessee’s statewide average somewhat lower. Economists note that it can take time for tax changes to fully filter through station pricing, so some of the benefit could be slow to reach drivers.
The Budget Hole It Would Blow
Gas and diesel taxes are a cornerstone of Tennessee’s highway and local transportation budgets, which means any holiday would leave a gap lawmakers would have to fill with other revenue or spending cuts. Transportation finance research and state planning documents show that shifts in excise tax rates can ripple across maintenance plans and local project schedules. The National Academies primer on transportation finance and the Tennessee Chamber Redbook both stress how heavily road programs rely on dedicated fuel revenue, so even a multi-cent suspension would force trade-offs in the next budget cycle.
Following Other States’ Lead
Clemmons and Mitchell are pointing to recent moves in other states as proof that a short-term break is politically and practically doable. The AP reported that Georgia signed off on a 60-day fuel tax suspension in mid-March, and Utah lawmakers have advanced a brief summer holiday of their own. Those examples highlight how quickly pressure at the pump can turn into policy ahead of peak travel season, while also forcing states to balance near-term relief against long-term maintenance and construction needs.
Clemmons and Mitchell say they will press budget negotiators this week, arguing that a short, targeted holiday could help working families as travel ramps up. WSMV plans to be on the Capitol steps for the press conference to capture the specifics and any response from the governor’s office and Republican budget leaders. If the idea makes it into the final budget, the next few weeks will reveal how much relief actually hits the pump and which transportation projects might be delayed to pay for it.
