Governor Katie Hobbs (D-AZ) has issued an executive order relaxing Arizona regulations for vehicles carrying agricultural products in order to offset rising costs in food and fuel.
The Order
Gov. Hobbs' Executive Order 2026-03 builds on President Donald Trump's Executive Order 14435, which suspends certain taxes on red-dyed diesel fuel used in agricultural vehicles through the end of 2026.
The key difference is that Gov. Hobbs' order relaxes the enforcement of state regulations on the use of red-dyed diesel fuel for vehicles cultivating and transporting agricultural products, while also increasing the allowed weight limit of vehicles carrying products on non-interstate highways to 90,800 pounds.
As a result, when combined with the red-dyed tax suspension, producers and transporters face fewer restrictions on collecting and delivering products, lowering prices.
What Hobbs is Saying
"Arizonans are feeling the squeeze at the grocery store, and we are stepping up to deliver relief," the Arizona Governor said in her press release, adding, "By cutting taxes and regulations for our farmers and ranchers, we're lowering the cost of doing business and helping Arizona families put food on the table in the face of skyrocketing costs due to the war in Iran. I know there's more to do to make Arizona more affordable, and I'll continue using every tool at my disposal to bring down costs for our families."
Similar Offset Methods
Senator Mark Kelly (D-AZ) has pursued his own ways to cut fuel costs since the Iran conflict began in March, first introducing the Gas Prices Relief Act to suspend the 18.4 cents-per-gallon federal gas tax.
When President Trump suggested he was open to suspending the gas tax in May, Sen. Kelly amplified the importance of his bill on social media, writing, "Families need help now. @RepChrisPappas and I already have a bill to suspend the gas tax. Let's get it done."
Most recently, as September ended, the Arizona Senator expanded and reintroduced the bill as the Consumer Fuel Prices Relief Act to extend the suspension through September 2027 and apply it to the gas, diesel, and airplane fuel taxes.
