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Part of A Trump administration plan is set to affect producers in North Dakota, involving key state representatives.

How could Trump's order allowing off-road diesel for highway use affect Governor Armstrong?

Likely What happens if… A possibility worth considering, not a forecast.

Governor Armstrong must manage new rules allowing off-road diesel for highway use Governor Armstrong must manage the implementation of the new rules allowing off-road diesel fuel for highway travel in North Dakota. While the state had already temporarily changed rules to expand red-dyed diesel usage for agricultural operations, the federal order from President Trump introduces a new layer of complexity. The state must now navigate the temporary allowance of off-road diesel for highway use while awaiting a decision from the Treasury Department regarding the fuel's taxation.

Reported by 2 independent outlets Written Oct 14
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How it reaches Armstrong

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The facts so far

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  • Off-road diesel is normally taxed 4 cents per gallon, while highway diesel carries a state tax of 23 cents per gallon.kfyrtv.com
  • President Trump signed an executive order to temporarily allow off-road diesel for highway use in North Dakota.kfyrtv.com
  • Governor Kelly Armstrong issued an expansion of the usage of red-dyed diesel to licensed motor vehicles connected with agricultural operations.kfyrtv.com
  • The Treasury Department has yet to announce what the new order would mean for the fuel’s taxes.kfyrtv.com

Why it matters

The ability to use cheaper, off-road diesel for highway purposes could provide relief to farmers and ranchers facing increased diesel prices. However, the temporary nature of the federal order and the pending decision from the Treasury Department mean the final tax structure and long-term viability of this usage remain uncertain.

As the chief executive, Governor Armstrong must ensure that the state's existing temporary rules align with the new federal allowance while preparing for potential changes in taxation. This requires careful coordination between state agencies and federal bodies, especially given the significant difference in the state tax rates for the two types of diesel.

What we don't know yet

  • What specific tax implications will the Treasury Department announce regarding the off-road diesel fuel?
  • How will the state manage the transition between the temporary state rules and the new federal order?

Is this still moving?

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What would change this answer

The Treasury Department announces a clear tax structure for the off-road diesel fuel.The uncertainty surrounding the financial impact on drivers and the state's revenue collection will be resolved, allowing Armstrong to finalize implementation plans.
Senators pressure Trump to reverse the diesel fuel usage order.The temporary allowance for off-road diesel use for highway travel could be rescinded, forcing the state to revert to previous, higher-taxed rules.

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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.