With Americans Paying Record High Gas Prices at Home, Reed Opposes Trump’s Plan for a $5B U.S.-Funded Bailout for Gulf States in the Middle East

WASHINGTON, DC - President Trump's chaotic policies and reckless war with Iran continue squeezing Americans' budgets and causing economic hardship for families and businesses. Gas prices are surging to roughly $4.48 per gallon for regular unleaded gas and $6.51 per gallon for diesel.

But instead of offering American drivers real relief at the pump, the Trump Administration wants to offer wealthy Middle East countries a $5 billion U.S. taxpayer funded investment fund to rebuild Persian Gulf energy infrastructure.

This week, the Wall Street Journal published a story -- U.S. Proposes $5 Billion to Kickstart Fund to Rebuild Gulf Energy Sites -- that the Trump Administration is proposing to provide $5 billion in U.S. taxpayer funding to prop up the oil and gas industry in the Middle East. The Trump Administration wants Americans to kickstart a fund that wealthy Middle Eastern autocratic states could tap to repair their oil and gas infrastructure that has been damaged and is experiencing a downturn due to President Trump's war with Iran.

U.S. Senator Jack Reed (D-RI) slammed Trump's plan to subsidize rich Middle Eastern monarchies with U.S. tax dollars as costly, wasteful, and unproductive.

"Once again, President Trump is trying to short-change Americans. He wants U.S. taxpayers to pay for his Iran war mistakes and provide some of his wealthy, royal friends with a gold-plated Big Oil bail out," said Reed.

Senator Reed says that instead of forcing Americans to rescue wealthy foreign rulers and rebuild their oil and gas infrastructure overseas, the Trump Administration should focus on helping Americans here at home; invest in cost-effective clean energy solutions that enhance America's energy independence; and provide real relief to Americans who are struggling under Trump's oil price hike and tariff taxes.

Senator Reed sent a letter to President Trump, stating: "While you are proposing to send $5 billion overseas, here at home, your administration is proposing to eliminate the Low-Income Home Energy Assistance Program (LIHEAP), which currently provides $4 billion to help low-income families and seniors afford to heat and cool their homes. Your administration has also worked continuously to halt or cancel countless clean energy projects poised to bring more affordable and domestically produced energy onto the grid to directly benefit American consumers.

"As I wrote to you back in March, the instability in the global oil and gas markets and the higher prices at the pump we are seeing were easily predictable. It is well past time for you to address the needs of American families who are bearing the brunt of the economic pain of the war."

According to the Wall Street Journal, Trump's plan to send $5 billion to the Middle East is dubbed the Partnership for Allied Trust and Construction (PACT) and would include Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Iraq, Oman, and Jordan.

While these countries have strong diplomatic and security ties with the U.S., Senator Reed notes that is not the same as them needing a U.S.-taxpayer funded bailout.

"Donald Trump's war with Iran is having an adverse economic impact on many of our allies - not just in the Middle East, but all across the globe. That doesn't mean President Trump can start treating U.S. taxpayers like a piggy bank for other countries to take from. These Middle Eastern countries are more than capable of making their own investments in their energy infrastructure. What President Trump needs to do is end his reckless war with Iran and offer a coherent strategy to fix the mess he has made," said Reed, who also pointed out the so-called PACT proposal was a half-baked risk.

The Wall Street Journal report cites experts who say the proposal puts the proverbial 'cart before the horse':

"Some Middle East officials said the initiative appeared to be Washington's attempt to cast the Strait of Hormuz as a less consequential energy route, and show the U.S. and its allies are united in confronting Iran. They added that creating a fund to rebuild destroyed energy sites without a peace deal with Tehran would be premature, as the regime could target new infrastructure with drones and missiles.

""This strategy has risk written all over it," said Bilal Saab, senior managing director of consulting firm TRENDS US."

Full text of Senator Reed's letter to President Trump follows:

Dear President Trump,

The war you began with Iran on February 28th without consulting Congress and without explanation to the American people has now dragged on for over 200 days with no end in sight. It has cost American lives, depleted military stockpiles, and hurt the American economy. Rather than ending the war and addressing its impacts on average Americans, the Wall Street Journal (WSJ) now reports that your Administration plans to provide $5 billion in taxpayer funding to prop up the oil and gas industry in the Middle East (U.S. Proposes $5 Billion to Kickstart Fund to Rebuild Gulf Energy Sites, Sept. 21, 2026).

As the WSJ notes, "[t]he move is a tacit acknowledgment that the seven-month conflict has roiled the global energy market and destroyed regional pipelines and refineries that will be costly to rebuild." Yet, unless you end the war and address the closure of the Strait of Hormuz and disruptions of shipments in the Red Sea, American consumers will continue to pay higher and higher prices.

In the seven months since you started the war, U.S. consumers have incurred $114 billion in additional costs on gasoline and diesel, translating to an extra $874 per U.S. household, according to Brown University's Iran War Cost Tracker. According to AAA, the nationwide price of diesel is $6.51 a gallon, up from $3.69 a gallon a year ago, impacting nearly every sector of the economy, from transportation to groceries. Based on data from the Department of Energy, the National Energy Assistance Directors Association found that U.S. households are projected to spend an average of $1,030 to heat their homes this winter, an increase of 8.7 percent, or $82, over last winter, while households that rely on heating oil face a 31 percent increase, or $548, due to the Iran war pushing global oil prices higher.

These increased energy costs translate to real hardship for American families. Temperatures are already starting to drop, and families are preparing to spend record amounts heating their homes this winter. While you are proposing to send $5 billion overseas, here at home, your administration is proposing to eliminate the Low-Income Home Energy Assistance Program (LIHEAP), which currently provides $4 billion to help low-income families and seniors afford to heat and cool their homes. Your administration has also worked continuously to halt or cancel countless clean energy projects poised to bring more affordable and domestically produced energy onto the grid to directly benefit American consumers.

As I wrote to you back in March, the instability in the global oil and gas markets and the higher prices at the pump we are seeing were easily predictable. It is well past time for you to address the needs of American families who are bearing the brunt of the economic pain of the war.

Thank you for your attention to this critical issue.

Sincerely,

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