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North Carolina Legislature Passes Bill Suspending 41-Cent-Per-Gallon Fuel Tax

Wednesday, October 7, 2026 · States · GSM News

RALEIGH, N.C. — The North Carolina General Assembly on Oct. 7 passed legislation suspending the state's 41-cent-per-gallon motor fuel tax, one of the highest state fuel taxes in the Southeast, PR Newswire reported.

The bill, approved during a special legislative session, pauses collection of a tax that has long been a key source of funding for road and bridge maintenance across the state. Republican sponsors said the suspension will give drivers immediate relief at the pump, where fuel prices have remained elevated amid the U.S. war with Iran and global energy market tensions.

Democrats and transportation advocates warned that suspending the tax will blow a hole in the state's transportation budget at a time when North Carolina faces a large backlog of infrastructure needs, from congested urban corridors to aging rural bridges. The state Department of Transportation has previously estimated billions in deferred maintenance.

The legislation now heads to the governor's desk. The suspension's duration, its fiscal impact on highway projects, and whether the state will backfill lost revenue from reserves were central points of debate during the session. Analysts said the move also carries political weight with the November midterms less than a month away, as both parties seek to show voters they are addressing cost-of-living pressures.

If signed, North Carolina would join a small number of states that have suspended fuel taxes in recent years as a form of direct consumer relief.

The governor's office has not said whether he will sign the bill; a veto would require a two-thirds majority to override.

Published by GSM · USA (original Chinese edition)

Photo: 图:北卡罗来纳州老州议会大厦(罗利)。摄影:Farragutful,CC BY-SA 4.0,来源:Wikimedia Commons

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