Trump in Ethanol-Friendly Iowa Pushes for Bill Boosting E15 Gasoline

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(Bloomberg) — President Donald Trump threw his support behind a legislative proposal that would expand sales of higher-ethanol E15 gasoline as he looked to build support for his economic record with a crowd that included farmers in Iowa.

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Trump told a rally near Des Moines, Iowa, on Tuesday that he was trusting congressional leaders to get a package approved that would enable sales of E15 gasoline year-round, effectively lifting limits that bar its sale in some areas during the summer. A measure proposed in Congress would tie that change to new restrictions scaling back the number of refineries that can get exemptions from annual quotas to use biofuels.

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“I am trusting Speaker Mike Johnson, who is great, and Leader John Thune, who is great — that’s House and Senate — to find a deal that works — we’ve got it — for farmers, consumers and refiners, including small and mid-sized refiners,” Trump said, to cheers. “In other words, to get E15 approved. And they’re working on it. They’re very close to getting it done.”

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Trump’s vow comes despite frictions over the drafted measure, which small refining advocates have warned threatens the economics of some fuel-making plants. It also represents a fresh bid by Trump to appeal to rural voters in Iowa, who helped usher him to victory in 2016 and 2024.

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Promises to boost ethanol have long been politically powerful in Iowa, a leading producer of the alternative fuel and the corn used to make it. Trump promised to support E15 while campaigning for the White House, but in his first term he drew criticism from ethanol makers after his administration widely granted refiner exemptions from annual biofuel-blending requirements. Existing federal law allows small refineries to be granted exemptions from the mandates if they demonstrate “disproportionate economic hardship.”

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House lawmakers have turned back a bid to add the E15 and refining provisions to a federal spending bill. Instead, they added a provision that would establish a rural domestic energy council to examine the issue, setting the stage for future legislation. The delay sparked an angry response from farm groups and biofuel supporters that have long campaigned for changes that would expand the domestic ethanol market.

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Separately Tuesday, Trump touted trade deals he said would enable more ethanol sales to the UK and Japan.

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Economic Pitch

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Trump’s visit to the state marked a bid to refocus attention on an economic message that’s been overshadowed by the backlash to his immigration crackdown in Minneapolis. During his speech, Trump touted lower costs for eggs and gasoline, while also promising Iowans his tariffs would ultimately enrich farmers by prompting other countries to open their markets to US soybeans and other agricultural goods. 

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Trump has sought to demonstrate that his administration is addressing voters’ affordability concerns, a major political liability for the president and his party ahead of November elections to determine control of Congress. Polls show the public has soured on his economic agenda as US households feel the strain from high costs for housing, utilities, groceries and healthcare.