U.S. House Reconciliation Bill Includes Safe Harbor Provision for Broker and Freight Forwarder Selection of Motor Carriers
May 2025 • Source: Gallagher Sharp LLP
On May 22, 2025, the U.S. House of Representatives passed a budget reconciliation bill that includes provisions potentially affecting the liability exposure of brokers and freight forwarders in motor carrier selection matters. Section 100005 of the reconciliation measure establishes a safe harbor mechanism with respect to broker due diligence obligations in the selection of motor carriers.
The proposed legislation directs the Federal Motor Carrier Safety Administration (FMCSA) to create a public website containing data on motor carriers that would provide definitive information about a motor carrier’s regulatory compliance and operating authority. The website would display one of two categorical statements:
1) confirmation that a motor carrier meets all FMCSA operating requirements and is authorized to operate, or
2) that the carrier fails to meet such requirements and does not have operating authority.
Access to this website data would require payment of an annual fee of $100.
Importantly, Section 10005(c) of the bill expressly provides that brokers, freight forwarders, and household goods freight forwarders who rely upon the website to ensure that a motor carrier meets the FMCSA operating requirements “shall be considered to have taken reasonable and prudent determinations in engaging such motor carrier.” This language potentially establishes a clear standard for broker and freight forwarder due diligence, which could assist against claims for negligent selection/hiring. While the bill must still navigate the legislative process in the Senate, its inclusion in the House reconciliation package indicates congressional support for addressing the ambiguity surrounding motor carrier selection standards. Our trucking defense team will continue to monitor the reconciliation process closely and provide timely updates or any changes to broker liability standards as they come in. |
