President Orders Treasury to Defer Diesel Excise Taxes Through December

President Donald Trump signed Executive Order 14435, titled “Emergency Tax Relief on Diesel Fuel,” on October 5, 2026, directing the Secretary of the Treasury to defer certain diesel fuel excise tax payments and to grant penalty relief to the extent permitted by law. The order was published in the Federal Register of Friday, October 9, 2026 (Vol. 91, No. 195, Presidential Documents, pp. 64747–64749) under document number FR Doc. 2026–20855. The White House cites restricted global diesel supply and rising prices as the trigger for the measure.

The order states that farmers and truckers “are essential to the American way of life” and have been “particularly hard hit” by rising fuel prices, and that further temporary relief is necessary. It directs the Secretary of the Treasury, in consultation with the Secretary of War as appropriate, to determine within five days whether relief is authorized under 26 U.S.C. 7508A, including whether a qualifying event has occurred and which taxpayers were affected by it. The Secretary of Agriculture and the Secretary of Transportation are directed to facilitate implementation of the policy.

Deferral of payments and penalty relief

If those determinations are made, the order directs deferral of payment of the taxes imposed by 26 U.S.C. 4041(a)(1)(A) or 26 U.S.C. 4041(b)(1)(B) that are incurred during the period of October 5, 2026, through December 31, 2026. Deferred amounts are to carry no penalties, interest, additional amount or addition to the tax.

Within five days, the Secretary of the Treasury must also direct the Internal Revenue Service to announce that it will not impose a penalty under 26 U.S.C. 6715(a)(1) or 26 U.S.C. 6715(a)(2) when dyed diesel fuel is sold for use or used on the highway between October 5 and December 31, 2026. That announcement must also address relief from penalties for failure to make semimonthly deposits of the tax.

Implementing guidance, forgiveness and enforcement

The Secretary of the Treasury must issue guidance implementing the order, identifying:

• the specific relief being granted and any conditions on it;
• the legal basis for relief, covered taxpayers, persons, locations, acts, liabilities and deadlines;
• the beginning and ending dates of each applicable period;
• the date by which postponed taxes must be paid.

The order further directs the Secretary to explore avenues, including legislation, to eliminate the obligation to pay the deferred amounts, and to assess how the Internal Revenue Service should allocate resources to inspections of vehicle fuel tanks and fuel sampling during the relief period, with a public announcement of that determination.

Highways, farmers and state coordination

The Secretary of Transportation, acting through the Administrator of the Federal Motor Carrier Safety Administration, must engage with state governments, relevant industry leadership and labor organizations to encourage safe and expedient coordination, while continuing all compliance enforcement measures, including audits, inspections and monitoring programs.

The Secretary of Agriculture must coordinate with agricultural cooperatives, rural fuel distributors, farm supply organizations and other agricultural stakeholders to ensure adequate distribution of dyed diesel in high-demand areas, and encourage corresponding state action. The Director of the White House Office of Intergovernmental Affairs is to engage with states to encourage policies corresponding to the Treasury relief. The order states that it creates no enforceable right or benefit against the United States, and that the costs of its publication are borne by the Department of Agriculture.

For farmers, truckers and fuel buyers, the order means cash-flow relief on diesel excise taxes for liabilities incurred between October 5 and December 31, 2026, with the practical details — covered taxpayers, deadlines and the date postponed taxes fall due — left to Treasury guidance due within days.

Source: Federal Register, Vol. 91, No. 195, October 9, 2026, Presidential Documents, pp. 64747–64749 (official reference: FR Doc. 2026–20855).