Emergency Tax Relief on Diesel Fuel

Executive Order 14435 of October 5, 2026

Emergency Tax Relief on Diesel Fuel

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered:

Section 1. Purpose and Policy. 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.

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.
I am also directing the Secretary of Agriculture and
the Secretary of Transportation to facilitate
implementation of this policy. This targeted action
will put money directly in the pocket of American
farmers, truckers, and workers, to support their vital
service to our Nation.

Sec. 2. Deferring Certain Payments of Excise Tax
Liability and Providing Penalty Relief. (a) Within 5
days of the date of this order, the Secretary, in
consultation with the Secretary of War, as appropriate,
shall determine whether relief is authorized under 26
U.S.C. 7508A, including whether a qualifying event has
occurred and which taxpayers have been affected by that
event. If the Secretary makes those determinations, the
Secretary shall, to the extent authorized by law, defer
payment by those taxpayers of the taxes imposed by 26
U.S.C. 4041(a)(1)(A) or by 26 U.S.C. 4041(b)(1)(B) and
that are incurred during the period of October 5, 2026,
through December 31, 2026.

    (b) Amounts deferred pursuant to the Secretary's
exercise of authority described in subsection (a) of
this section shall, to the extent authorized by law, be
deferred without any penalties, interest, additional
amount, or addition to the tax.
    (c) Within 5 days of the date of this order, the
Secretary shall 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
during the period of October 5, 2026, through December
31, 2026. The announcement shall also address relief
from penalties for failure to make semimonthly deposits
of that tax.

Sec. 3. Implementing Guidance. The Secretary shall
issue guidance implementing this order. The guidance
shall identify the specific relief being granted and
any conditions on such relief; 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.

Sec. 4. Tax Forgiveness. The Secretary shall explore
avenues, including legislation, to eliminate the
obligation to pay the amounts deferred pursuant to the
Secretary's exercise of authority described in section
2 of this order.

Sec. 5. Prioritizing Fuel Compliance Resources. The
Secretary shall assess how the Internal Revenue Service
should allocate resources to inspections of vehicle
fuel tanks and fuel sampling during the period of any
relief

provided under section 2 of this order, and shall
publicly announce that determination.

Sec. 6. Maintaining Safety and Efficiency on America's
Highways. The Secretary of Transportation, acting
through the Administrator of the Federal Motor Carrier
Safety Administration (Administrator), shall:

    (a) engage with State governments, relevant
industry leadership as determined by the Administrator,
and relevant labor organizations as determined by the
Administrator to encourage safe and expedient
coordination between the Federal Government and these
various stakeholders in furtherance of the policies of
this order; and
    (b) continue all compliance enforcement measures,
including audits, inspections, and monitoring programs,
as provided for by law.

Sec. 7. Promoting Diesel Access for Farmers. The
Secretary of Agriculture shall further the priorities
of this order, including by:

    (a) coordinating with agricultural cooperatives,
rural fuel distributors, farm supply organizations, and
other agricultural stakeholders, as determined by the
Secretary of Agriculture, to ensure adequate
distribution of dyed diesel for their use in high-
demand areas; and
    (b) encouraging corresponding State action to
further the policies of this order.

Sec. 8. Engaging State Governments. The Director of the
White House Office of Intergovernmental Affairs shall
engage with States to further the policies of this
order, taking appropriate action to encourage States to
adopt policies that correspond to the Secretary's
exercise of authority described in section 2 of this
order, in accordance with applicable law.

Sec. 9. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.

    (b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
    (c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.

    (d) The costs for publication of this order shall
be borne by the Department of Agriculture.

    (Presidential Sig.)

THE WHITE HOUSE,

    October 5, 2026.