U.S. – Trump moving toward an order to expand access to tax-free diesel

U.S. President Donald Trump is preparing an executive order aimed at expanding access to tax-free diesel fuel, according to sources familiar with the matter, in a move that could lower costs for farmers, truckers and other businesses that rely on diesel.

The order, which is expected to be signed in the coming days, would direct federal agencies to review and potentially expand the categories of users eligible for tax-free diesel, which is currently available to farmers, construction companies and other off-road users.

“The president wants to make it easier for American businesses to access affordable fuel, and this order is a step in that direction,” a White House official said, speaking on condition of anonymity.

The move comes as the administration seeks to address concerns about rising fuel costs and their impact on the economy, particularly in rural areas and in the transportation sector.

Critics, however, warned that expanding access to tax-free diesel could reduce federal revenue and increase emissions, as diesel fuel is a major source of air pollution.

“This is a giveaway to polluters at the expense of public health and the environment,” said a spokesperson for an environmental group.

The order would also direct the Environmental Protection Agency to review regulations that limit the use of tax-free diesel, and to consider whether they should be relaxed.

According to sources, the order is part of a broader effort by the administration to reduce regulatory burdens on businesses and to promote domestic energy production.

“The president is committed to unleashing American energy dominance, and this order is part of that effort,” the White House official said.

The move is expected to be welcomed by farmers and truckers, who have long complained about the high cost of diesel fuel and the complexity of the tax exemption process.

“This would be a big help for our members, who are struggling with high fuel costs,” said a spokesperson for a trucking industry association.

However, some analysts cautioned that the impact of the order may be limited, as the tax exemption is already available to many users, and the main barrier is often the administrative burden of claiming it.