Trump eases red diesel tax rules in Nebraska push ahead of midterms
US President Donald Trump signed an executive order in Nebraska easing limits on tax-free red-dyed diesel, claiming it will save farmers money and lower prices. The move comes a month before midterm elections where Republicans face pressure over high costs.
President Donald Trump traveled to Nebraska on Monday, where he signed an executive order easing restrictions on the tax-free use of red-dyed diesel fuel. This fuel, intended for agricultural and other off-road purposes, is exempt from federal and state excise taxes in the US and is dyed for law enforcement monitoring purposes.
Trump framed the move as a way to ease cost pressures on businesses reliant on diesel, claiming it would save farmers millions of dollars and help bring down the price of goods. He added that a typical trucker could save more than $100 per fill-up.
However, fuel market analyst Patrick De Haan of GasBuddy had previously noted that such an order could help on-road diesel users but not farmers, who already use red-dyed diesel. He argued that the real issue is supply, not taxes. Diesel prices have risen sharply following the Iran war.
Trump delivered his remarks at a rally in Grand Island, addressing Republican Senator Pete Ricketts, who is running against an independent candidate, and Governor Jim Pillen, who is seeking a second term. Trump claimed the signed order would guarantee their election victories.
Voter frustration over high fuel and grocery prices is a significant factor pressuring Republicans ahead of the November 3 midterm elections, which could determine control of Congress. Adding to the tension, the administration's plan to increase beef imports has provoked backlash from Nebraska ranchers, who fear it could undercut their prices.
Meanwhile, Vice President JD Vance traveled to Alaska to support Republican Senator Dan Sullivan, who faces Democrat Mary Peltola in one of several races expected to help determine control of Congress.
