The White House order, issued October 5, 2026, provides temporary tax relief on diesel fuel to help farmers, truckers, and other workers facing higher fuel costs. It directs the Treasury Department to defer certain federal diesel taxes incurred from October 5 through December 31, 2026, without penalties or interest where legally permitted.
“A farmer can’t wait for prices to come down. The crop is in the field right now. This week @POTUS signed an order that temporarily allows tax-free dyed diesel to be used on the highway. The federal diesel tax is deferred through the end of the year, with no interest and no penalties. That’s about $60 on a 250-gallon fill, and more where states follow suit. It’s temporary, and it’s not the whole answer. But for the families who feed America, it is real relief at a critical time. The long-term fix is more supply and more refining capacity. That is the work still ahead.” – Rep. Rich McCormick
The order also allows red-dyed diesel, normally intended for off-road use, to be used on highways without certain penalties during this period. The administration will work with states, fuel distributors, farmers, and transportation groups to expand access to the fuel. It will also explore whether the deferred taxes can eventually be eliminated rather than repaid.
The policy is intended to provide short-term relief from high diesel prices, particularly for farmers and truckers, while the administration addresses tight global diesel supplies.
