President Donald Trump signed an executive order on Tuesday to expand access to tax-free diesel fuel across the nation, a move that coincides with legislative and executive actions in multiple states to suspend or reduce gasoline taxes. With Election Day less than a month away, rising fuel costs linked to the administration’s military engagement with Iran have prompted lawmakers and governors from both parties to seek immediate relief for drivers and agricultural operators.
The president signed the directive at a political rally in Nebraska, where he addressed U.S. Sen. Pete Ricketts and Gov. Jim Pillen. Trump told the officials that the action would secure their re-election campaigns, stating, “this should absolutely ensure your election, I guarantee you that.”
State Tax Suspensions
Governors in Georgia and Indiana have utilized executive orders to temporarily suspend state gasoline taxes. In Ohio, lawmakers voted last month to approve a 90-day gas tax holiday, a measure supported by both Democratic and Republican candidates for governor. However, the timing of the legislation drew criticism from Senate Minority Leader Nickie Antonio, who questioned the sudden urgency.
“If this had been so important, we would have acted (earlier this year), but we didn’t,” Antonio said.
In Utah, legislators voted earlier this year to temporarily reduce the gas tax by 15 percent. Meanwhile, in Connecticut, Republicans proposed a three-month fuel tax holiday. Democratic lawmakers in the state countered that efforts should focus on ending the conflict with Iran rather than adjusting state revenue structures.
Red-Dyed Diesel Expansion
Prior to the president’s national order, ten states had already moved to reduce restrictions on tax-exempt diesel fuel. Red-dyed diesel is typically restricted to off-highway use for agricultural, industrial, and railroad operations. Governors in North Dakota, Nebraska, Oklahoma, Texas, Missouri, Arkansas, Louisiana, Alabama, North Carolina, and Indiana issued orders expanding the use of the untaxed fuel to help farmers and truckers manage transportation costs.
Tennessee Gov. Bill Lee issued an order on Tuesday allowing farmers and loggers to use red-dyed diesel on public roads. In Kentucky, Agriculture Commissioner Jonathan Shell asked Gov. Andy Beshear to roll back restrictions on untaxed diesel. The Iowa Corn Growers Association urged state lawmakers to follow similar measures and pushed the Trump administration to release oil from the U.S. Strategic Oil Reserve.
In North Carolina, legislative leaders called for a special session to address fuel prices. Some lawmakers suggested using surplus revenue from state reserves to fund road projects while suspending the gas tax, aiming to balance infrastructure needs with immediate consumer relief.