President Trump announced an $8 billion aid package Monday to help U.S. farmers pay for diesel this harvest season.
The relief package, announced at a campaign rally in Kansas and on social media, aims to lower fuel costs for Americans ahead of next month’s midterm elections.
“Tonight, I am also pleased to announce that the Department of Agriculture will launch a new ‘Crop Fuel Assistance Program,’ providing our farmers with $8 BILLION to offset diesel costs this harvest season,” Trump’s Truth Social (DJT) account posted.
“When the Republicans win, we will give even more funding to our big farmers, and fuel prices will fall as soon as the war in Iran is over, which will happen very quickly!” he added.
The Harvest Fuel Relief Program will be administered by the U.S. Department of Agriculture. Trump credited Republican Sen. Roger Marshall of Kansas with helping advance the initiative.
The White House decision comes as nearly every sector of the economy, including agriculture and transportation, grapples with soaring energy input costs.
Diesel prices on Monday were hovering around a national average of $6.31 per gallon after hitting a record high in September, driven by conflicts in the Middle East and Ukraine, as well as limited global refining capacity.
Read more: The US economy faces 2 hot wars that are escalating at the wrong time for the White House
The aid program will not directly reduce fuel costs, but is expected to provide one-time payments, administered by the Farm Service Agency (FSA), to help farmers offset these expenses.
Earlier this month, the Trump administration moved to lift restrictions on red-tinted diesel, a tax-exempt fuel typically reserved for tractors and farm equipment. The measurement allows its use in standard road vehicles.
Ines Ferre is a senior economics reporter for Yahoo Finance.
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