President Donald Trump signed an executive order on Tuesday to broaden access to tax-exempt diesel fuel nationwide, a move that aligns with legislative actions in multiple states to pause or lower gasoline taxes. The federal directive arrives less than a month before Election Day, amid rising fuel costs linked by some officials to the administration’s military engagement with Iran.
Federal Diesel Policy Shift
The executive order relaxes restrictions on red-dyed diesel, which is typically reserved for off-road use in agriculture, industry, and rail transport. By allowing broader usage, the administration seeks to lower transportation expenses for farmers and truckers. Ten states had already eased similar diesel restrictions before Trump’s national order.
Governors in North Dakota, Nebraska, Oklahoma, Texas, Missouri, Arkansas, Louisiana, Alabama, North Carolina, and Indiana previously issued orders expanding red-dyed diesel access. Tennessee Gov. Bill Lee joined the effort on Tuesday, permitting farmers and loggers to use the untaxed fuel on public roads.
Trump signed the order at a political rally in Nebraska, where he told U.S. Sen. Pete Ricketts and Gov. Jim Pillen that the action would secure their re-election. “This should absolutely ensure your election, I guarantee you that,” Trump said.
State-Level Tax Relief
Several state leaders have moved to reduce fuel costs for residents. In Ohio, lawmakers approved a 90-day gas tax holiday last month. Both major party candidates for governor supported the measure, though Senate Minority Leader Nickie Antonio questioned its timing.
In Georgia and Indiana, Govs. Brian Kemp and Mike Braun respectively suspended state gasoline taxes via executive order. Utah legislators voted earlier this year to temporarily cut the gas tax by 15 percent.
Texas Gov. Greg Abbott emphasized the economic strain caused by high prices, noting that “record prices put both industries at risk and raise costs for every Texas family.”
Agricultural and Political Responses
The Iowa Corn Growers Association urged state lawmakers to adopt similar measures and pressure the Trump administration to release oil from the U.S. Strategic Oil Reserve. In Kentucky, Agriculture Commissioner Jonathan Shell asked Gov. Andy Beshear to roll back restrictions on untaxed diesel fuel.
In North Carolina, legislative leaders called for a special session to address fuel prices. Some lawmakers proposed using surplus state reserves to fund road projects while suspending the gas tax.
Connecticut Republicans introduced a proposal for a three-month fuel tax holiday. Democratic counterparts argued that efforts should focus on ending the conflict with Iran rather than implementing temporary tax relief.