Trump signs order expanding access to tax-exempt diesel weeks before US midterms

US President Donald Trump signed an executive order on Monday, 5 October 2026, that expands access to tax-exempt diesel fuel. Reuters and France 24 both reported the signing.

The order concerns red-dyed diesel. France 24 described a White House fact sheet saying that diesel for off-road uses, such as agriculture, is exempt from federal and state excise taxes. That diesel is dyed so the rules can be enforced.

According to France 24, Trump signed the order onstage at a rally in Grand Island, Nebraska. The outlet said the limits are being removed temporarily. It said the change would reduce cost pressures on businesses that rely on diesel. France 24 also reported that diesel prices have risen sharply following the Iran war.

Before the signing, Reuters reported that Trump was preparing the order. It said the order could be unveiled as soon as Monday, citing two sources familiar with the matter.

The reports reviewed by Vocemundi do not include the text of the order. They do not say which limits are eased, which users become eligible, or how long the change lasts. They do not explain the legal basis for the order or whether it can affect state taxes. They include no estimate of lost tax revenue.

What is disputed

Trump said the order would save farmers millions of dollars. Patrick De Haan of GasBuddy said such an order could save money for on-road users but not for farmers, who already use red-dyed diesel, according to France 24.

What each side says

Trump said the order would drive down the cost of goods. "The typical trucker will save more than $100 every time they fill up," he said, according to France 24. The reports include no independent assessment of that figure.

De Haan wrote on X: "Taxes aren’t the problem, supply is," according to France 24.

Political context

The signing came about four weeks before the midterm elections on 3 November 2026. In Nebraska, Republican Senator Pete Ricketts faces independent Dan Osborn, who France 24 says is backed by national Democrats. Governor Jim Pillen is seeking a second term. "Pete and Jim, this should absolutely ensure your election, I guarantee you that," Trump said, according to France 24.

Ricketts told the AP that "the plan to import low-quality foreign beef is not helping Nebraska ranchers," according to France 24. He urged the White House to change the policy.

According to AdImpact, the Congressional Leadership Fund, a pro-Republican super PAC, cancelled $1.1 million in planned broadcast spending for the Republican candidate in Nebraska's 2nd District. France 24 said the group did not immediately respond to a request for comment.

Trump has described his rally schedule before Election Day as a 32-day blitz. France 24 reported he is scheduled to hold a rally in San Antonio, Texas, on Wednesday.

Analysis

The order puts fuel costs, a concern for truckers and farmers, at the centre of the final weeks of the midterm campaign. Its practical effect is still unclear. The reports do not specify which limits change, for how long, or how state taxes and fuel-rule enforcement would be affected. If on-road users gain access to untaxed diesel, revenue for road funding could become a point of debate. If, as De Haan argues, supply drives prices, savings may be smaller than the White House suggests. Publication of the order's text would allow these claims to be tested.

Produced by the Vocemundi newsroom with AI assistance.