President Donald Trump signed an executive order Monday granting temporary diesel tax relief during a rally in Grand Island, Nebraska. The order permits diesel dyed red for off-road use to be used on highways and postpones federal excise tax payments on that fuel through the end of 2026 without interest or penalties.

“Today I’m announcing another unprecedented step to bring down costs,” Trump told the crowd. The president described the action as relief for users of farm vehicles, construction equipment, and other vehicles that traditionally rely on diesel dyed red.

“For many years, farm vehicles, construction equipment, and other off-road vehicles have used what is known as red dye diesel. Tonight, I’m going to sign a historic executive order to officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason,” Trump said.

Trump then called for executive assistant Natalie Harp to bring the order onto the stage. “I’ll sign it right here!” he declared before the Nebraska crowd.

President Trump signed an Executive Order right here in Nebraska to lower diesel costs for American farmers, truckers, and workers.

By expanding access to red-dyed diesel and providing federal tax relief, President Trump is once again taking decisive action to put money back in the pockets of hardworking Americans. Promises made. Promises kept. — Susie Wiles (@SusieWiles47) October 6, 2026

Warning: Account balances and purchasing power no longer tell the same story. Know in 2 minutes if your retirement is working for you.

The president also addressed Sen. Pete Ricketts and Nebraska Gov. Jim Pillen as he prepared to sign the measure. “This should absolutely assure your election. I guarantee it,” Trump told them.

“You two guys were great. You stuck with us, and we have to. Otherwise, we’re not going to have a country anymore. So I appreciate it, and I’m going to sign this,” Trump continued.

The president also took a jab at his predecessor while putting his name on the order. “I’m going to do what Joe Biden couldn’t do: sign his signature,” he said.

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The White House said the federal tax on diesel is 24.4 cents per gallon. That amounts to approximately $60 on a 250-gallon fill, while the potential savings could exceed $100 per fill in states that take corresponding action.

Under the order, the Treasury Secretary, working in consultation with the Secretary of War, is directed to defer the federal excise tax imposed on highway use of dyed diesel through the end of 2026. The deferral carries no interest or penalties.

The order also directs officials to examine possible ways to eliminate the obligation to pay those deferred taxes, according to a White House fact sheet. Federal officials are further instructed to coordinate access to fuel and encourage states to follow the federal government’s move.

The White House explained that diesel used on highways is subject to federal and state excise taxes. Diesel used away from highways for agriculture, construction, or heating is untaxed and dyed red so law enforcement can identify it when enforcing highway use penalties and collecting back taxes.

The administration attributed higher diesel prices and restricted global supplies to the war between Russia and Ukraine and insufficient refining capacity around the world. It also blamed “Democrat-led States that chose to shut down their refineries in the name of ‘Green Energy’ policies.”

Agriculture Secretary Brooke Rollins welcomed the executive order. Vice President JD Vance also praised Trump for moving quickly to address the issue and highlighted the administration’s focus on farmers and other workers.

“Another example of President Trump acting quickly to tackle an urgent issue. In this administration, we’re fighting every day to help hard-working Americans, especially our farmers,” Vance stated.

Trump credited Pillen and Ricketts for their work on the diesel measure while also recognizing Iowa gubernatorial candidate Zach Lahn. He thanked Pillen “for his leadership on this,” and added, “He worked with us—very strong.”

“A lot of senators would not have been able to do what Pete was able to do,” Trump said before adding, “Along with Iowa gubernatorial candidate Zach Lahn.” Lahn later wrote on X that he had proposed the relief during a conversation with Vance.

When @VP came to Council Bluffs for the rally a few weeks ago, he asked me what the administration could do to provide immediate relief to farmers.

I told him that waiving federal and state off-road requirements for red dye diesel would save our farmers more than fifty cents a gallon during harvest. Tonight, @POTUS officially signed an executive order doing just that— which will provide immediate relief and much-needed savings for farmers in Iowa and all over America. It was an honor to work with @POTUS and @VP to help make this executive order happen. I promised Iowans that I would fight to put them first and I’m not waiting for an election to do it. — Zach Lahn (@ZachLahn) October 6, 2026

The signing came amid a packed rally that drew praise from OANN Chief White House Correspondent Daniel Baldwin. He described the crowd as “outrageous” and wrote that the expo center was mobbed, with thousands outside and Americans lining streets along the motorcade.

“Massive support for President Trump here,” Baldwin wrote. The rally gave Trump a public stage to sign the diesel order while recognizing Nebraska and Iowa political figures who worked on the measure.

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