Trump Signs Executive Order Temporarily Allowing Tax-Exempt Dyed Diesel for Highway Use

President Trump signed an executive order on Monday temporarily permitting the use of off-road dyed diesel in highway vehicles and deferring the federal excise tax through the end of 2026. The move, announced at a campaign rally in Grand Island, Nebraska, aims to lower fuel costs for truckers and farmers amid record-high diesel prices driven by the war with Iran and global supply disruptions. The order directs the secretaries of Transportation, Agriculture, Defense, and the Treasury to allow the waiver and encourages states to suspend inspections and state taxes. Ten states had already enacted similar temporary measures. The order bypasses Congress, which holds constitutional authority over federal excise taxes, and was announced at a campaign rally, personalizing state functions for electoral benefit. No specific statutory authority was cited, raising separation-of-powers concerns. Analysts noted the direct pump-price impact may be limited but could reduce supply-chain costs for gr...

“For many years, farm vehicles, construction equipment and other off-road vehicles have used what’s known as red-dyed diesel. You know what that is? I don’t know what the hell it is, but whatever it is, it is supposed to be very good,” Trump said at a campaign rally in Grand I... Quote verified against source