Trump signs executive order expanding use of tax-exempt agricultural diesel

Oct 07, 2026, 09:18 am

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U.S. President Donald Trump applauds during a midterm election campaign rally held at the Pinnacle Bank Expo Center in Grand Island, Nebraska, on the 5th (local time). / Reuters, Yonhap

U.S. President Donald Trump on the 5th (local time) authorized the use of specialized diesel previously reserved exclusively for agricultural purposes in other applications.


Visiting Grand Island, Nebraska, to support the midterm campaign rally for Republican Senator Pete Ricketts, President Trump signed an executive order allowing so-called "red-dyed diesel"—which is exempt from federal highway fuel taxes—to be used in non-agricultural vehicles as well as farming equipment, according to reports by the New York Times and other outlets.


Under the order, the administration directed federal departments to seek avenues to defer highway tax payments levied on diesel through the end of this year and explore measures to waive them altogether.


Red-dyed diesel has primarily been used in agriculture and on construction sites. While chemically identical to conventional diesel, refiners add a small amount of red dye to distinguish it.


Red-dyed diesel is exempt from the 24.4-cent-per-gallon federal highway fuel tax, as well as certain state taxes earmarked for road construction and maintenance.


It is not sold at most gas stations or truck stops and cannot legally be used in vehicles operating on public roadways. The dye is introduced before distribution so enforcement officers can inspect and verify fuel compliance.


Ahead of the midterm elections next month, President Trump has sought to appease sentiments within the agricultural sector, where farmers complain of financial hardship fueled by tariff policies and rising inflation.


In particular, the policy is seen as a response to growing concerns that surging diesel prices are swaying farm votes, given the heavy reliance of agricultural households on tractors and transport trucks.


In Nebraska, visited by Trump that day, Senator Ricketts is locked in a competitive race against independent challenger Dan Osborn. While farmers and ranchers in the U.S. have traditionally formed a core constituency for the Republican Party, the party cannot afford complacency in this election.


                                                                                                             Kim Hyun-min

#executive order #diesel #agriculture 
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