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Iran War Throws Wrench In GOP Plans To Address Cost Of Living Concerns

The Iran war is already driving gas to $4.54 a gallon and Republicans are watching their cost-of-living agenda slip away six months before midterms.

May 8, 2026 · via The Daily Caller
Iran War Throws Wrench In GOP Plans To Address Cost Of Living Concerns
Iran War Throws Wrench In GOP Plans To Address Cost Of Living Concerns

The Iran conflict has thrown a live grenade into Republican plans to tackle affordability before voters return to the polls. While lawmakers still intend a second budget reconciliation bill to expand on immigration enforcement and White House priorities, the Strait of Hormuz blockade is pushing oil, fertilizer, sulfur and steel prices higher, guaranteeing sustained pain at the pump and in grocery aisles.

Average U.S. gasoline prices hit $4.54 per gallon this week, up from under $3 before the fighting began, according to AAA data. Even if a peace deal eventually reopens shipping lanes, relief will arrive gradually. An NPR/PBS News/Marist poll released this week captured the damage: 55 percent of Americans now say the economy no longer works for them—the highest share in the poll’s history—and 81 percent report being especially strained by fuel costs.

House Republicans are divided on how to respond. Missouri Rep. Eric Burlison called affordability “the No. 1 issue that people are dealing with right now.” Florida Rep. John Rutherford warned against letting the war “sideline us because of the fuel prices back here in America,” urging speed. Yet talks are snarled by disputes over Iran war funding, potential cuts to social services, and a stalled elections bill that has already inflamed internal GOP tensions.

Defense spending discussions add another layer. House Budget Chair Jodey Arrington floated roughly $100 billion to replenish munitions and improve readiness, part of a larger debate on long-term “deterrence.” Offsets for such sums worry vulnerable members. Meanwhile, Texas Sen. Ted Cruz and others push to index capital gains to inflation and expand tax cuts inside the package, arguing these steps would deliver tangible relief before Election Day.

Health care, housing and social-program tweaks remain on the table but face resistance. Virginia Rep. Rob Wittman insisted “health care reform should be a part” of any new bill because it drives costs, yet expanded Obamacare subsidies are off-limits. New Jersey Rep. Jeff Van Drew counseled a “very narrow” approach: “Don’t mix a lot of other stuff in there that could put members in a precarious position back home.”

The SAVE America Act sits stalled in the Senate, prompting talk of folding pieces into “Reconciliation 3.0,” but conservatives warn major provisions would die under reconciliation rules. Republicans now confront a brutal choice: fund a war that is inflating the very cost-of-living crisis they promised to fix, or risk entering the midterms without a credible economic message. The numbers are already moving against them.

Original reporting: The Daily Caller.

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