Trump signed an executive order on deferring the diesel tax to save money for farmers

During a rally in Grand Island, Nebraska, President Donald Trump signed an executive order temporarily allowing the use of red-dyed off-road diesel on highways. The document also defers federal excise tax payments on this type of fuel until the end of 2026 without accruing interest or penalties.

According to the order, instructions have been given to defer the federal excise tax on the use of dyed diesel on roads without penalties and interest until the end of the year, as well as to explore opportunities for the complete waiver of obligations to pay the deferred taxes. According to the White House, the federal diesel tax is 24.4 cents per gallon (about $60 when filling a 250-gallon tank). In regions where states support this federal measure, savings at the pump may exceed $100.

White House official materials note that on-road diesel is subject to federal and regional excise taxes, whereas off-road fuel for agriculture, construction, or heating is tax-exempt. Off-road fuel is dyed red so that law enforcement agencies can identify violators during inspections and collect fines and arrears.

The White House linked the rise in diesel prices and the restriction of global supplies to the conflict between Russia and Ukraine, insufficient global refining capacities, and the actions of Democratic-led states that closed oil refineries due to "green energy" environmental policies.

Vice President JD Vance noted the head of state's promptness in addressing pressing issues and emphasized the administration's work in the interests of American workers and farmers. At the rally, gratitude was also expressed for the work on the diesel measure to Nebraska Governor Jim Pillen, Senator Pete Ricketts, and Iowa gubernatorial candidate Zach Nunn.