Trump Signs Order Providing Diesel Tax Relief for Farmers

President Donald Trump signed an executive order on October 6, 2026, providing temporary diesel fuel tax relief for farmers and truckers. The measure aims to combat rising prices resulting from restricted global supply by deferring certain excise tax payment obligations and providing penalty relief for taxes incurred between October 5 and December 31, 2026.

Under the order, the Internal Revenue Service will waive penalties for the use of tax-exempt dyed diesel fuel on highways during this window. The Secretary of the Treasury is responsible for the tax deferments, while the Secretary of Agriculture and the Secretary of Transportation are tasked with facilitating the distribution of dyed diesel and maintaining highway safety.

Zippy Duvall, President of the American Farm Bureau Federation, applauded the decision, noting that the federal highway diesel tax exceeds 24 cents per gallon. Duvall stated that the relief is critical for farmers currently completing their harvest.