Senator Tom Cotton of Arkansas called on Mar. 26 for Treasury Secretary Scott Bessent to temporarily suspend federal penalties on the use of red diesel fuel for on-road purposes, citing rising costs faced by Arkansas farmers.
The request comes as many family farms in Arkansas are struggling with increased input costs and a recent spike in bankruptcy filings. Cotton said that suspending the penalty would help farmers save money during ongoing disruptions in global energy markets.
“I write to urge the administration to implement a temporary moratorium on federal penalties for on-road use of red diesel fuel. American farmers continue to face a cost crisis that threatens the survival of family farms across the country. A penalty waiver for the duration of the current disruption to global energy markets would provide immediate relief at minimal cost to the federal government,” Cotton wrote in his letter.
Cotton pointed out that while electric vehicles do not pay federal fuel excise taxes, farmers must purchase taxed highway diesel whenever they operate trucks on public roads, adding an extra 24 cents per gallon. He noted that “the Trump administration made $12 billion available through the Farmer Bridge Assistance Program,” but more action is needed due to high bankruptcy rates and projected losses among row crop producers this year.
According to the official website, Cotton grew up on a family cattle farm in Yell County and has assisted Arkansans with casework involving federal agencies, visas, passports, and military honors. He attended Dardanelle High School before earning degrees from Harvard University and Harvard Law School.
Cotton served as an Infantry Officer in the United States Army and has chaired or served on several Senate committees including Intelligence, Armed Services, and Energy and Natural Resources according to his official website. He currently leads as chairman of the Senate Republican Conference.
In closing his letter, Cotton wrote: “A nation that cannot feed itself cannot defend itself. And if we continue to lose family farms, we will depend on foreign producers for the food on our tables. Lifting the red diesel penalty is a small step the administration can take today to keep our family farms operational for generations to come.”
The broader implications include possible short-term financial relief for Arkansas farmers if such a moratorium is granted. Observers will watch whether this proposal gains traction within Congress or with executive branch officials.
