Trump Administration and 31 States Cut Dyed Diesel Costs
Secretary of Agriculture Brooke Rollins announced that 31 states joined a federal initiative to waive dyed diesel taxes, potentially saving agricultural producers over $640 million.
U.S. Secretary of Agriculture Brooke L. Rollins announced that 31 states have implemented relief measures to complement a federal initiative reducing diesel costs for farmers, ranchers, and truckers. The program follows Executive Order 14435, signed by President Donald Trump on October 5, 2026, which directed the U.S. Department of the Treasury and the Internal Revenue Service to suspend federal excise tax enforcement and waive penalties for using off-road dyed diesel on highways.
The Internal Revenue Service issued subsequent guidance on October 14 and October 21 to clarify these tax suspensions and reduce reporting requirements. The White House attributed the necessity of the measure to restricted global diesel supplies resulting from the war between Russia and Ukraine. The initiative provides relief from a federal tax of 24.4 cents per gallon.
The United States Department of Agriculture estimates that combined federal and state actions could save producers more than $640 million across 224.6 million harvested acres. Secretary Rollins has commended the participating states and urged the remaining governors to adopt similar measures to ensure relief reaches agricultural producers during the critical harvest season.
