Trump announces $8 billion for farmers to offset soaring diesel costs

President Trump announced an $8 billion aid package on Monday to help US farmers pay for diesel this harvest season.

The relief program, announced at a campaign rally in Kansas and on social media, aims to bring down fuel costs for Americans ahead of next month's midterm elections.

"Tonight, I am also pleased to announce that the Department of Agriculture will be launching a new 'Harvest Fuel Relief Program,' providing our Farmers with 8 BILLION DOLLARS in support to offset Diesel costs during this Harvest Season," Trump's account posted on Truth Social ( DJT ).

"When Republicans win, we will pass even more funding for our Great Farmers, and Fuel prices will come tumbling down as soon as the Iran War is over, which will happen very quickly!" he added.

The Harvest Fuel Relief Program will be administered by the US Department of Agriculture. Trump credited Republican Sen. Roger Marshall of Kansas with helping advance the initiative.

The White House move comes as nearly every corner of the economy, including farming and transportation, grapples with soaring energy input costs.

Diesel prices on Monday hovered near 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 constrained global refining capacity.

The aid program won't directly lower 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-dyed diesel, a tax-exempt fuel typically reserved for tractors and farm gear. The measure allows its use in standard highway vehicles.

Ines Ferre is a senior business reporter for Yahoo Finance.