EO-14435
Emergency Tax Relief on Diesel Fuel
- Signed
- Oct 5, 2026
- Published
- Oct 9, 2026
Federal Register: 2026-20855
Source: Federal Register.
Directs Treasury to decide on deferring diesel excise tax payments through Dec. 31, 2026
What it does
The order directs the Treasury Secretary to decide within 5 days whether 26 U.S.C. 7508A allows relief, including whether a qualifying event occurred and which taxpayers were affected. If so, the Secretary shall defer payment of certain federal diesel excise taxes incurred October 5 to December 31, 2026, to the extent authorized by law, without penalties or interest. The order also directs the IRS to announce that it will not impose certain penalties for dyed diesel used on highways in that period. The order directs the Secretary to issue guidance and to explore ways, including legislation, to forgive the deferred amounts. It directs the Transportation and Agriculture Secretaries and the White House Office of Intergovernmental Affairs to support the policy, and it is implemented consistent with applicable law and subject to the availability of appropriations.
Who benefits
Truckers and trucking companies that pay the covered diesel excise taxes, who could hold onto cash until the deferral ends. Farmers and agricultural cooperatives that buy diesel, including those in high-demand areas that could see better dyed diesel distribution. Rural fuel distributors and farm supply businesses that sell diesel and may face fewer penalty risks. Sellers and users of dyed diesel on highways, who would not face certain IRS penalties during the period. Consumers could see indirect benefits if lower costs for carriers hold down freight and food prices, though this is uncertain.
Who is affected
Federal taxpayers generally, since deferred or forgiven excise taxes could reduce or delay revenue that funds highway programs. The IRS, which must issue announcements and guidance and decide how to allocate fuel inspection resources. The Treasury, Transportation and Agriculture departments and the Federal Motor Carrier Safety Administration, which take on added implementation work. State governments, which are encouraged to adopt matching policies and could face revenue or administrative questions if they do. Trucking and farm businesses that fall outside the Secretary's determination, who may get no relief. Compliant fuel sellers and users who might see less enforcement of fuel-tax rules against competitors during the relief period.
Supporters argue
Supporters argue that the order gives temporary, limited relief to industries that move food and goods during a period of high diesel prices. They contend it uses a tool Congress already wrote into the tax code, 26 U.S.C. 7508A, and applies only if the Secretary finds a qualifying event, so it stays within the law. They add that deferral keeps cash with farmers and truckers, that safety enforcement continues, and that the order directs Treasury to look for lasting forgiveness through Congress rather than acting alone.
Opponents argue
Opponents argue that the order stretches a tax-code provision meant for disasters and similar events to cover a fuel price problem, which could exceed what Congress authorized. They contend it could reduce or delay dedicated highway funding, favor two industries over other fuel users, and ease penalty enforcement that deters dyed diesel misuse. They add that the order directs Treasury to explore forgiving the deferred taxes, which could turn a delay into a permanent cut without a vote by Congress.
Constitutional basis
Executive orders rest on constitutional authority or statutory delegation. This summary describes the legal grounding cited or implied by the order.
The order cites the authority vested in the President by the Constitution and the laws of the United States, and directs the Treasury Secretary to act under 26 U.S.C. 7508A and to apply 26 U.S.C. 4041 and 6715.