President Trump held a rally in Sioux City, Iowa, on Thursday, October 22, 2026, to discuss financial measures for farmers facing high energy costs. The president highlighted an $8 billion harvest fuel relief program, which was unveiled earlier in the week, and the use of the Defense Production Act to release $150 million to expand domestic diesel refining. The visit occurred 12 days before the midterm elections as Republican candidates face competitive races in a state that Mr. Trump won by 13 points in 2024.
Iowa farmers have faced financial pressure from surging fertilizer and diesel prices following the start of the war in Iran. These costs followed earlier struggles to export crops due to trade wars last year. Additionally, heavy rains in September have caused harvest delays across the state. The Trump administration defended its Iran strategy at the rally, with the president stating that oil prices would drop once the conflict concludes.
During the event, the president touted a waiver allowing drivers to use "red-dyed" diesel—a fuel normally restricted to off-road use—tax-free. He also highlighted a plan for Mesabi Metallics to construct a steel plant in eastern Iowa by 2030 and the $150 million allocation to increase American refining capacity. At the rally, Mr. Trump appeared alongside Republican Rep. Ashley Hinson, who is running for a Senate seat against Democratic state Rep. Josh Turek.
The $8 billion relief program aims to offset fuel costs that have remained above $6 per gallon, according to AAA data cited by CBS News. The red-dyed diesel waiver removes fuel taxes for farmers and truckers who are currently paying high prices.
The political impact centers on Iowa's four House seats and one Senate seat, which polls indicate have become competitive. In the Senate race, Hinson and Turek are reported to be in a "neck-and-neck" contest. While the president’s 4th Congressional District supporters remained vocal, some rally attendees expressed concern that the Iran war’s impact on energy prices could influence the midterm outcome. Democratic candidates, including Turek, have attributed high energy prices to the administration's handling of the war, while some Republicans have called for an immediate end to the conflict.
The next steps in this policy rollout include the distribution of the $8 billion in aid and the refinery expansion projects funded by the $150 million Defense Production Act allocation. The Mesabi Metallics steel plant is not scheduled for completion until 2030. The midterm election is on November 3, 2026.