The American Road & Transportation Builders Association (ARTBA) recently reported on a directive from the White House regarding federal diesel fuel taxation. On Oct. President Donald Trump issued 5 Executive Orders that mandate the Department of the Treasury, U.S. to take specific action.S.S. Department of the Treasury to explore temporary changes to diesel tax requirements. The directive requires the Internal Revenue Service and the Treasury to allow red-dyed diesel use on public roads. It also targets deferred diesel excise tax payments through Dec. 31. 31. Federal agencies are expected to release guidance and outline their next steps by Oct. 10. The federal diesel fee is currently set at 24.4 cents per gallon. This fee funds surface transportation projects nationally through the Highway Trust Fund, which is known as the HTF. In Fiscal Year 2025, the HTF generated revenue exceeding $10 billion from diesel taxes, or 25 percent of its total excise income. This data aligns with the 04/07/29/2022 analysis. The administration aims to give financial relief to farmers, truckers, and others, per the 2026/10/09/20855 document. However, the proposal for a tax deferral rather than a complete suspension suggests that these liabilities may still require payment in the future. Furthermore, it remains unclear if fuel distributors will reduce retail prices or continue to account for the tax in their current pricing. Regarding the use of red-dyed diesel, the order seeks to temporarily waive restrictions that normally limit this tax-exempt fuel to off-road applications. Operators should be aware that these potential federal changes do not supersede state-level diesel taxes or individual state restrictions on dyed fuel usage. ARTBA has expressed concerns about the impact of these policies on the long-term solvency of the HTF. An earlier study examined 177 state-level motor fuel tax adjustments. It discovered that retail gas prices captured only 18 percent of these changes during a 14-day period. The Transportation Construction Coalition, co-chaired by ARTBA, has formally communicated its concerns regarding the potential negative effects on the HTF to Treasury Secretary Scott Bessent. Brokers and insurers must remember that federal tax collection updates do not eliminate state requirements. Furthermore, penalties for using dyed fuel on public roads remain in effect. Source: American Road & Transportation Builders Association
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