Trump signs order extending tax-free use of red-dyed diesel during
midterm stop in Nebraska
[October 06, 2026] By
NICHOLAS INGRAM, SEUNG MIN KIM and MEG KINNARD
GRAND ISLAND, Neb. (AP) — President Donald Trump on Monday took his
Republican midterm rescue mission to Nebraska, where he signed an
executive order to ease limits on the tax-free use of red-dyed diesel, a
decision he said would save “millions” for farmers and drive down the
cost of all goods with just four weeks to go until the elections.
“Pete and Jim, this should absolutely ensure your election, I guarantee
you that,” Trump said, addressing GOP Sen. Pete Ricketts, who is running
against an independent candidate backed by national Democrats, and Gov.
Jim Pillen, who is seeking a second term.
Diesel fuel prices have spiked in the aftermath of the Iran war,
rattling voters and putting pressure on Republicans. Diesel fuel that is
intended for off-road uses such as agriculture is exempt from federal
and state excise taxes, and it is dyed for law enforcement purposes, the
White House explained in a fact sheet. Temporarily removing the limits
would reduce cost pressures on the businesses that rely on diesel.
“The typical trucker will save more than $100 every time they fill up,”
Trump said, signing the executive order onstage before a crowd in Grand
Island, Nebraska, in the solidly conservative south-central part of the
state. He said the order will save farmers millions of dollars and drive
down the cost of goods.
Patrick De Haan of GasBuddy, a platform that monitors national gasoline
and diesel prices, noted last week, when news of the possible action
began to surface, that such an order could save money for on-road users
but not farmers, who already use red-dyed diesel.
"Taxes aren’t the problem, supply is," De Haan wrote on X.
Trump's trip is part of what the Republican president says is a 32-day
blitz of rallies ahead of Nov. 3 that so far has taken him to ruby-red
territory such as Oklahoma and Alabama. On Wednesday, he'll make his
second stop in two weeks in Texas with a rally in San Antonio.
Ricketts, a former governor of the state, was appointed then later
elected to fill Sen. Ben Sasse’s seat when he left to run the University
of Florida in 2023. Now Ricketts is running for his first full six-year
term against independent Dan Osborn — a race that initially was not
expected to be competitive but is now being watched by the national
parties.
Republicans facing headwinds amid voter discontent
Voters across the country are frustrated with Trump's handling of the
economy, including persistently high costs for fuel and groceries. It's
a major issue for rural voters who have backed the president and his
party in recent elections.
The administration’s plan to allow more imports of foreign beef has
particularly roiled the agriculture-rich state of Nebraska. Trump wants
to lower beef prices for consumers, but ranchers have rebelled against
the import proposal, arguing it would undercut them.
“The plan to import low-quality foreign beef is not helping Nebraska
ranchers,” Ricketts told the AP. “I would advise the White House to
change that policy and look for longer-term things that will help us
build the size of the herd and ultimately bring the price of beef down
for consumers.”
In Grand Island, rally-goers said they they trusted Trump to solve the
high cost of living.
“I feel like if we get our reserves built back up, get this situation in
Iran taken care of, our gas prices will go down. The economy as far as
groceries and stuff like that, it's going to go down too. It’ll
stabilize. I have faith in him. More faith in him than I ever had in any
other president," said Marlene Abel from Garfield, Kansas.
David Kuncl, who grew up on a farm, expressed confidence things would
improve in the long run. But the Lincoln, Nebraska, resident insisted
Trump wasn't to blame, pointing instead to what he believes is “a coup,
a plot to try to hurt Trump" and the Republicans in the midterms.
“It’s hurting us. Gas prices. Diesel prices. Beef prices," he said. “I
don’t know why they’re high. But it’s not that Trump’s got anything to
do with that. He’ll do what he can. But of course he can’t wave a magic
wand and make it go lower.”
Democrats are aiming to flip a House seat in Nebraska
In the House of Representatives, the Grand Island area is represented by
Republican Rep. Adrian Smith, whose race is not expected to be close.
But Nebraska has a competitive House race farther east in Omaha, in the
2nd District — considered the “blue dot” of the state because the area’s
electoral vote in presidential elections often goes to Democrats. The
district is in the midst of a competitive race between Republican
Brinker Harding and Democrat Denise Powell to fill retiring Rep. Don
Bacon ’s open seat.
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President Donald Trump displays a signed executive order at a
campaign rally at the Pinnacle Bank Expo Center, Monday, Oct. 5,
2026, in Grand Island, Neb. (AP Photo/Alex Brandon)
 Monday's rally came as the
Congressional Leadership Fund, a super PAC dedicated to electing
Republicans to the House, cancelled $1.1 million in planned
broadcast spending on behalf of the Republican candidate in the
race, according to AdImpact, which tracks campaign media spending.
It was a possible sign that GOP leaders feel the money could be put
to better use elsewhere. The group did not immediately respond to a
request for comment.
There are tentative plans for Trump to travel to other election
battlegrounds, including Michigan, North Carolina, Georgia, Ohio,
Kansas, Montana, Pennsylvania, Alaska, Nevada and Arizona before
November’s Election Day. That’s according to a person familiar with
the plans who spoke on condition of anonymity because they were not
authorized to speak publicly and cautioned the plans could shift.
There are a few Senate races where independents are the
challengers
Osborn, a former labor union chief, ran against Republican Sen. Deb
Fischer in 2024 and lost by 7 percentage points. Though national
Democrats support him, he has refused to say what party he would
caucus with should he be elected in November.
Other independents in the Senate, including Maine’s Angus King on
the moderate end and Vermont’s Bernie Sanders on the left, caucus
with Democrats for organizational purposes and committee
assignments.
With the Democratic brand remaining deeply unpopular in conservative
states, Osborn isn’t the only declared independent running for the
Senate against Republicans this year. In South Dakota, Brian Bengs
is campaigning as an independent against Republican Sen. Mike
Rounds. Bengs ran as a Democrat for the Senate four years ago and
was handily defeated by now-Senate Majority Leader John Thune. It’s
a similar dynamic in Idaho, where independent Todd Achilles is
challenging GOP Sen. Jim Risch.
Democratic voters in Nebraska chose Cindy Burbank as their party
nominee, but Burbank campaigned on ensuring that no votes would be
siphoned from Osborn in the general election, and she has since
dropped out of the race.
Osborn has been traveling across Nebraska to hold meetings in all 93
counties, and has repeatedly criticized Ricketts for not holding
town halls to meet with constituents.
Ricketts, whose family founded TD Ameritrade and owns Major League
Baseball’s Chicago Cubs, served as governor from 2015 to 2023.
Vance stumps in Alaska
As Trump traveled to Nebraska, Vice President JD Vance headed to
Fairbanks to rally with Republican candidates, including Sen. Dan
Sullivan, who is locked in a contest with Democrat Mary Peltola
that's one of a handful expected to determine control of the chamber
in the November elections.
Vance praised Sullivan before a crowd gathered at the airport,
saying the two-term senator is known for texting Cabinet members in
the middle of the night to make the case for Alaska interests.
He cast Peltola, who served in the House from late 2022 and lost
reelection in 2024, as ineffective during her time in Congress and
called her a “servant of the far left.” Peltola has sought to
distance herself from national Democrats and emphasize that she is
doing what she thinks is best for the state. Alaska Democrats
described Vance's visit to help Sullivan as an act of desperation.
Sullivan was in the Oval Office last week as Trump announced that
South Korea planned to invest about $54 billion in a natural gas
project in Alaska, but South Korean officials were more cautious,
saying they needed to assess the project’s commercial viability
before committing to the investment.
Vance also expressed support for Rep. Nick Begich, whom he called a
“machine” and a hard worker. Begich, first elected in 2024, is
facing independent Bill Hill, a commercial fisherman and former
educator, as his main competitor.
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