Gina Hinojosa campaigns for Texas governor with gas tax suspension plan
Updated
Updated · POLITICO · May 6
Gina Hinojosa campaigns for Texas governor with gas tax suspension plan
10 articles · Updated · POLITICO · May 6
The Democratic state representative urged suspending Texas' 20-cent-a-gallon fuel tax, while polls show her trailing Governor Greg Abbott by 5 to 6 points before November.
Hinojosa says Abbott let power bills rise and failed to curb electricity-hungry data centres, while his campaign says ending the tax would hurt school and highway funding.
The race could influence the wider US energy sector in the top oil, gas, wind and solar state, where affordability pressures have intensified amid inflation linked partly to the Iran war.
As data centers demand more power than entire cities, can Texas manage this boom without raising energy and water costs for residents?
How will streamlined environmental reviews under the Trump administration reshape the future of America's energy infrastructure and public lands?
Will corporate pledges and new policies be enough to shield consumers from the rising energy costs of the artificial intelligence boom?
Texas’s $3.4 Billion Gas Tax Suspension Debate: Immediate Relief vs. Long-Term Infrastructure Risks
Overview
In May 2026, Texas faces a severe affordability crisis driven by soaring gas prices averaging $3.90 per gallon, caused by a global oil supply shock after Iran closed the Strait of Hormuz. Democratic candidate Gina Hinojosa and Republican Agriculture Commissioner Sid Miller formed a rare bipartisan alliance demanding Governor Abbott suspend the state's 20-cent gas tax to provide immediate relief, potentially saving Texans $8 million daily. However, Abbott resists, citing the tax's vital role in funding roads and schools and warning that suspension would create a $3.4 billion revenue shortfall, risking infrastructure deficits and long-term fiscal instability. The debate highlights a clash between urgent consumer relief and sustaining essential public services amid economic uncertainty.