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(Washington, D.C., October 29, 2026) – Today, U.S. Secretary of Agriculture Brooke L. Rollins recognized the 31 states that have taken early action to complement President Donald J. Trump’s emergency dyed diesel relief initiative and encouraged remaining governors to take corresponding action to provide relief to American farmers, ranchers, and transportation operators.
On October 5, 2026, President Trump, with the strong support of Vice President J.D. Vance, signed Executive Order 14435, Emergency Tax Relief on Diesel Fuel, directing the U.S. Department of the Treasury and Internal Revenue Service (IRS) to provide temporary federal penalty relief for highway use of off-road dyed diesel and suspend enforcement of applicable federal excise taxes, thereby lowering costs for Americans.
“I want to personally thank President Trump and Vice President Vance for their leadership in advancing this important relief for American agriculture. I also want to commend the governors who have taken action to provide relief to our hardworking farmers, ranchers, and transportation operators during this critical harvest season,” said Secretary of Agriculture Brooke L. Rollins. “Their leadership is an important part of ensuring this relief reaches the producers who need it most. For the remaining states, I respectfully encourage their governors to join us in taking corresponding action on dyed diesel alongside the Trump Administration. Together, we have an opportunity to provide our mutual constituents with real relief for the remainder of this harvest season and beyond.”
With the federal diesel excise tax totaling 24.4 cents per gallon, USDA estimates that this broader initiative could deliver more than $640 million in combined federal and state savings across approximately 224.6 million harvested acres.
In accordance with President Trump’s Executive Order, the IRS published guidance (IR-2026-122) on October 14, 2026, clarifying that, for the duration of the relief period, it will suspend enforcement and collection of the federal dyed diesel excise tax and waive the penalty for on-road use of dyed diesel. Additional guidance (IR-2026-125), issued October 21, 2026, provided further relief from federal tax-related reporting and recordkeeping requirements for covered dyed diesel transactions during the relief period.
To date, 31 states have taken or announced dyed-diesel-related action, including suspending certain penalties, modifying enforcement practices, or taking other measures intended to reduce unnecessary burdens on agricultural producers and transportation operators.
Secretary Rollins is encouraging governors who have not yet acted to give full and fair consideration to implementing corresponding relief alongside the Trump Administration. USDA will continue working with state leaders to support implementation and ensure that farmers, ranchers, and transportation operators have access to the relief available under federal and state law.
Background:
- October 5, 2026: President Trump signed Executive Order 14435, Emergency Tax Relief on Diesel Fuel, with the strong support of Vice President Vance.
- October 14, 2026: The IRS issued guidance (IR-2026-122) providing temporary federal dyed diesel excise tax enforcement and penalty relief.
- October 21, 2026: The IRS issued additional guidance (IR-2026-125) addressing federal reporting and recordkeeping requirements.
- Projected Savings: USDA estimates more than $640 million in potential combined federal and state savings across approximately 224.6 million harvested acres.
- State Action: 31 states have taken or announced dyed-diesel-related measures, including highway-use relief and modifications to enforcement practices.
Farmers, ranchers, fuel distributors, state officials, and other stakeholders with questions regarding dyed diesel relief, eligibility, or implementation are encouraged to contact USDA at DyedDiesel@usda.gov, or refer to the official IRS’s Dyed Diesel Frequently Asked Questions.
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