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Emergency Tax Relief on Diesel Fuel

Published by The White House on October 5, 2026.

The October 5 executive order. It sets a conditional deferral of the highway diesel excise tax through December 31, 2026, and directs an announcement that no penalty will be imposed for highway use of dyed diesel in that period. It is a tax and penalty measure, not a reserve delivery.

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… <p class="wp-block-paragraph">By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:</p> <p class="wp-block-paragraph"><a><u>Section</u></a> <span style="text-decoration: underline">1</span>.  <span style="text-decoration: underline">Purpose and Policy</span>.  Farmers and truckers are essential to the American way of life.  Restricted global diesel supply has led to rising prices, and these key industries have been particularly hard hit.  While my Administration has already undertaken historic efforts to ensure fuel affordability for our citizens, it is clear that further temporary relief is necessary. </p> <p class="wp-block-paragraph">To that end, today I am directing the Secretary of the Treasury (Secretary) to use his authority to defer certain diesel fuel tax payment obligations and to provide penalty relief to the extent permitted by law. &nbsp;I am also directing the Secretary of Agriculture and the Secretary of Transportation to facilitate implementation of this policy.&nbsp; This targeted action will put money directly in the pocket of American farmers, truckers, and workers, to support their vital service to our Nation.</p> …

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