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A red tractor in a green agricultural field in Southborough, Massachusetts. Farmers are raising concerns about access to tax-exempt red diesel as high fuel prices increase pressure on U.S. households and agricultural operations.
Trump’s Tax-Free Diesel Plan Faces Doubts From Farmers and Drivers
CHICAGO — October 22, 2026
US President Donald Trump’s temporary move to expand access to tax-exempt diesel is facing doubts from farmers and practical difficulties for other drivers, limiting the potential benefits of a plan intended to ease the burden of rising fuel prices.
Trump signed an executive order this month allowing temporary use of red-dyed diesel on public roads by waiving a federal restriction that normally limits the fuel to off-road activities. The measure is intended to help drivers save money as diesel prices remain high ahead of the November midterm elections.
Red diesel is similar to regular diesel but is dyed red to show that highway fuel taxes have not been paid. It is generally used in agricultural machinery such as tractors and combine harvesters. Under Trump's order, some farmers could also use it in trucks transporting crops, depending on state rules.
However, many farmers are reluctant to use the fuel in vehicles driven on public roads. They fear that red dye could remain in their fuel tanks after the temporary federal exemption ends, potentially exposing them to penalties if inspectors later find evidence of improper use.
The Internal Revenue Service said it would not impose a federal penalty for using dyed diesel on highways between October 1 and December 31. But the order does not override state fuel taxes or state-level penalties, leaving drivers subject to different rules depending on where they operate.
Glenn Brunkow, president of the Kansas Farm Bureau and a farmer near Wamego, Kansas, said the possible savings were not worth the risk of dye remaining in fuel systems.
Kansas has strict restrictions on the use of dyed diesel on public roads. According to the state's Department of Revenue, violations can result in felony charges, driver's licence suspension and penalties ranging from $1,000 to $10,000.
Kansas Governor Laura Kelly said the state could not legally implement Trump's order as drafted. The Kansas Highway Patrol also raised concerns about enforcement problems once the temporary federal measure expires.
For some farmers, the financial benefit may be limited even where the fuel can legally be used. Jay Sorg, a fifth-generation farmer in New Richland, Minnesota, estimated the order could save him between $1,500 and $2,000. But he said that amount would not offset broader increases in fuel and other operating costs. Many farmers, including Sorg, purchase diesel in advance and store it in tanks for later use.
Other farmers have raised concerns about the effect of increased red-diesel use on public finances. Ryan Wagner, a farmer in Roslyn, South Dakota, said greater use of fuel exempt from highway taxes could reduce revenue available for road maintenance.
Access is another obstacle. States have adopted different approaches to the temporary measure, and some have limited which vehicles or journeys qualify. Iowa Governor Kim Reynolds issued a proclamation allowing dyed diesel on highways until February, but only for vehicles carrying specified agricultural products. Texas requires drivers to register with the state to benefit from its temporary suspension of restrictions.
A Reuters reporter visited four Houston-area locations listed online as selling red diesel through commercial fuel-card providers. Three sold only commercial diesel, while the red-diesel pumps at the fourth location were not working. A notice at that site said the fuel was intended for agricultural use and should not be used on public roads.
Vincenzo Lasalosi, a firefighter in Houston, said he had considered using red diesel in his pickup truck because of high fuel prices but did not know where to find it. He added that travelling a long distance to obtain the fuel might eliminate the savings.
The administration has introduced several measures aimed at easing energy costs. These include an $8 billion support programme for farmers facing diesel expenses during the autumn harvest, relaxed restrictions affecting some Russian fuel shipments, pressure on allies to release emergency oil reserves and a temporary easing of rules governing foreign-flagged vessels travelling between US ports.
White House spokesperson Taylor Rogers said Trump remained committed to reducing costs and supporting American energy production. However, fuel prices have remained elevated amid the US-led war with Iran.
With the midterm elections approaching, rising farm expenses could also become a political issue in rural areas that have traditionally supported Republicans. The extent to which the red-diesel exemption helps drivers will depend on state rules, fuel availability and whether the potential savings outweigh the risks and practical difficulties.
