Trump Signs Executive Order to Lower Diesel Costs

President Donald Trump signed an executive order at a rally in Grand Island, Nebraska, allowing red-dyed off-road diesel to be used on highways temporarily. This measure also delays federal excise tax payments on that fuel until the end of 2026 without any interest or penalties.

“Today I’m announcing another unprecedented step to bring down costs,” Trump told the audience. He explained that red-dyed diesel, typically limited to farm and construction vehicles, would now be available tax-free to anyone for any purpose.

During the rally, he called his executive assistant, Natalie Harp, to present the order and exclaimed, “I’ll sign it right here!”

Speaking to Nebraska officials, Trump expressed confidence in the upcoming election, saying, “This should absolutely assure your election. I guarantee it.” He thanked them for their support, stating, “You two guys were great. You stuck with us, and we have to.”

Trump added somewhat teasingly, “I’m going to do what Joe Biden couldn’t do: sign his signature.”

The White House mentioned that with the federal diesel tax at 24.4 cents per gallon—roughly $60 for a 250-gallon fill—savings from this order could exceed $100 depending on state compliance.

According to the order, the Treasury Secretary, in association with the Secretary of War, is directed to pause the federal tax for dyed diesel used on highways through the end of the year without penalties and to investigate ways to eliminate the need to pay deferred taxes. Federal officials are also instructed to facilitate fuel access and encourage state actions.

The White House noted that while highway diesel is taxed, off-road diesel used for activities like farming and construction is tax-exempt. This off-road fuel is dyed red for law enforcement to distinguish it and enforce tax laws for highway usage.

The administration attributed rising diesel prices and limited global supply to issues stemming from the Russia-Ukraine conflict, along with insufficient refining capacity. They also placed blame on “Democrat-led States that chose to shut down their refineries in the name of ‘Green Energy’ policies.”

Agriculture Secretary Brooke Rollins expressed support for the executive order on Monday.

Vice President JD Vance remarked that it exemplifies Trump’s quick action on critical issues, emphasizing, “In this administration, we’re fighting every day to help hard-working Americans, especially our farmers.”

Susie Wiles also commended the executive order.

Trump recognized Iowa gubernatorial candidate Zach Lahn, along with Nebraska Governor Jim Pillen and Senator Pete Ricketts, for their contributions to the diesel measure, highlighting their effective teamwork.

“He worked with us—very strong,” Trump said of Pillen, acknowledging his unique capabilities compared to other senators. Lahn mentioned on social media that he had discussed the relief proposal previously with Vance.

OANN’s White House Correspondent, Daniel Baldwin, described the lively atmosphere at Trump’s Nebraska rally, noting, “The expo center is mobbed. Thousands of people outside.” He remarked on the widespread support for Trump noted during the event.