Red Diesel on Highways: 31 States Have Waived Penalties, 19 Haven't
The federal order has been in effect since Oct. 5. USDA, as cited by Land Line, says 31 states have issued their own orders; the rest of the governors got a letter.
Key facts
The Oct. 5 order lets trucks run red (dyed) diesel on public roads without federal penalties or interest through Dec. 31, 2026. The 24.4-cent federal tax is deferred under the order, not forgotten.
A federal order does not override state law. Per USDA figures cited by Land Line, 31 states have issued their own penalty waivers and 19 have not. Agriculture Secretary Brooke Rollins sent a letter to the governors of those states.
USDA estimates combined federal and state relief at more than $640 million. AAA put the national average diesel price at $6.32 a gallon on Oct. 30, unchanged from the order's start.
For brokers: price against the real pump price for now. For drivers: check whether each state on the route has its own waiver, because state-law penalties can still apply.