Trump signs order easing highway limits on tax-exempt diesel
In short
US President Trump signed an executive order on October 5 local time that temporarily suspends some federal restrictions on red-dyed diesel, allowing tax-exempt fuel normally limited to off-road use to be used for highway transport. Trump said the move is aimed at cutting costs. The US government cannot cancel the diesel tax outright without congressional approval, so the order pauses federal enforcement for a limited period, and states may still decide whether to keep enforcing their own tax rules.
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US President Trump signed an executive order on October 5 local time that temporarily suspends part of the federal restrictions on red-dyed diesel, allowing tax-exempt diesel normally used only off-road to be used for highway transport. Trump said the move is aimed at lowering costs, according to accounts carried by CLS, Yicai and Jiemian. [ 2 , 3 , 4 ]
The reports note that the US government has no authority to remove the diesel tax without congressional approval. The order therefore takes the form of a temporary pause in federal enforcement, and states retain the option of continuing to enforce their own tax rules. The stated aim is to cut the cost of fuel for farmers transporting crops during the current harvest season; truck drivers able to obtain red-dyed diesel can also use the tax-exempt fuel. [ 2 , 3 , 4 ]
The US Department of Agriculture estimates that farmers could save about $640 million in combined federal and state diesel taxes this harvest season, based on 150 miles (about 241 km) driven per farmer, according to CLS and Jiemian. The White House estimates that truck drivers can save up to $129 each time they fill up with red-dyed diesel, Jiemian reported. [ 2 , 4 ]
Why it matters
The measure is aimed at lowering fuel costs for farmers hauling crops during the harvest season and for truck drivers who can obtain red-dyed diesel. Because the order only suspends federal enforcement, its practical effect depends on whether individual states continue to apply their own diesel tax rules.
Key facts
- Trump signed an executive order on October 5 local time temporarily suspending some federal restrictions on red-dyed diesel. [ 2 , 3 , 4 ]
- The order allows tax-exempt diesel normally restricted to non-highway use to be used for highway transport. [ 2 , 3 , 4 ]
- Trump said the purpose is to reduce costs. [ 2 , 3 , 4 ]
- The US government has no authority to cancel the diesel tax without congressional approval, so the order suspends federal enforcement for a limited period instead. [ 2 , 3 , 4 ]
- States can still decide for themselves whether to continue enforcing their tax rules. [ 2 , 3 , 4 ]
- The USDA estimates farmers could save about $640 million in combined federal and state diesel taxes this harvest season, based on 150 miles (about 241 km) driven per farmer. [ 2 , 4 ]
- The White House estimates truck drivers could save up to $129 each time they fill up with red-dyed diesel. [ 4 ]
Confirmed by several sources
- Trump signed an executive order temporarily suspending part of the federal restrictions on red-dyed diesel, allowing fuel normally limited to off-road use on highways. [ 2 , 3 , 4 ]
- Trump said the measure is intended to lower costs. [ 2 , 3 , 4 ]
- Washington cannot abolish the diesel tax without Congress, so the order suspends federal enforcement for a limited time, and states may still enforce their own tax rules. [ 2 , 3 , 4 ]
- The USDA estimates about $640 million in combined federal and state diesel tax savings for farmers this harvest season. [ 2 , 4 ]
Still unclear
- How long the suspension of federal enforcement will last and when it takes effect. The documents say only that the pause is for a limited period and give no start or end date.
- Whether individual states will continue to enforce their own diesel tax rules. Documents say states may decide for themselves, but no state decisions are reported.
What local media are saying
Timeline, local time
- CLS reports that Trump will ease restrictions on the use of tax-exempt diesel. [ 1 ]
- Trump signs the executive order temporarily suspending some federal restrictions on red-dyed diesel. [ 2 , 3 , 4 ]
- CLS reports the signing of the executive order and the reasons given for it. [ 2 ]
- Yicai carries the account, citing CCTV News. [ 3 ]
- Jiemian reports the order, the USDA savings estimate and the White House estimate of up to $129 saved per fill-up. [ 4 ]