President Donald Trump signed an executive order Tuesday expanding access to tax-free diesel fuel nationwide, a move that coincides with several state governments suspending gasoline taxes less than a month before Election Day. The federal action and subsequent state-level measures aim to lower transportation costs for drivers and agricultural producers amid rising fuel prices linked to the President’s military engagement with Iran.
Federal Executive Order on Diesel Access
The executive order, signed at a rally in Nebraska, broadens the availability of red-dyed diesel fuel. This specific type of fuel is typically restricted to off-highway use for agricultural, industrial, and railroad operations due to its tax-exempt status. By expanding access, the administration intends to provide immediate relief to farmers and truckers facing elevated transportation expenses.
Ten states had already issued orders reducing restrictions on tax-exempt diesel prior to the President’s nationwide directive. Those states include North Dakota, Nebraska, Oklahoma, Texas, Missouri, Arkansas, Louisiana, Alabama, North Carolina, and Indiana. On Tuesday, Tennessee Governor Bill Lee followed suit, issuing an order that permits farmers and loggers to use red-dyed diesel on public roads.
President Trump addressed U.S. Sen. Pete Ricketts and Nebraska Governor Jim Pillen at the signing event, linking the policy action to their upcoming electoral prospects. “This should absolutely ensure your election, I guarantee you that,” Trump said.
State Gas Tax Holidays and Reductions
Alongside federal diesel reforms, governors and legislatures in Georgia, Indiana, Ohio, and Utah have moved to temporarily suspend or reduce state gasoline taxes. In Ohio, lawmakers voted last month to approve a 90-day gas tax holiday. The measure received support from both Democratic and Republican candidates for governor, highlighting bipartisan pressure to address fuel costs.
However, the timing of the legislation drew criticism from some legislative leaders. Senate Minority Leader Nickie Antonio questioned the urgency of the vote, noting that similar measures were not prioritized earlier in the year. “If this had been so important, we would have acted (earlier this year), but we didn’t,” Antonio said.
In Georgia and Indiana, Governors Brian Kemp and Mike Braun respectively suspended state gas taxes via executive orders. Utah lawmakers took a different approach earlier this year, voting to temporarily reduce the gas tax by 15 percent rather than suspending it entirely.
Legislative Responses Across the Midwest
Legislative leaders in North Carolina have called for a special session focused on fuel prices. Some lawmakers in the state suggested using surplus revenue from state reserves to fund road projects while simultaneously suspending the gas tax, attempting to balance infrastructure needs with consumer relief.
Agricultural groups are also pushing for further federal intervention. The Iowa Corn Growers Association urged lawmakers to pressure the Trump administration to release oil from the U.S. Strategic Oil Reserve. Similarly, Kentucky Agriculture Commissioner Jonathan Shell asked Governor Andy Beshear to roll back restrictions on untaxed diesel fuel within the state.
In Connecticut, Republicans proposed a three-month fuel tax holiday. Democrats in the state countered that legislative focus should remain on ending the conflict with Iran rather than implementing temporary tax breaks. As Election Day approaches, the debate over fuel pricing continues to dominate policy discussions across multiple states.