A bipartisan invoice launched within the U.S. Home of Representatives Oct. 6 would alleviate a coming menace to commuter railroads. The difficulty considerations legal responsibility insurance coverage protection federal legislation requires. The price for such insurance coverage is predicted to leap almost 24%, from $323 million to about $400 million subsequent 12 months.
Federal legislation requires passenger rail operators to hold sufficient insurance coverage to cowl as much as a specific amount in damages from a single accident. That quantity is adjusted each 5 years by the Secretary of Transportation, primarily based on an inflation index. Present legislation requires railroads to acquire wanted insurance coverage inside 30 days of the reset; the invoice extends that to 90 days.
“The insurance coverage market may be very fragile,” Commuter Rail Coalition CEO KellyAnne Gallagher mentioned in an interview. “We will solely get this stage of insurance coverage abroad.”
If a commuter railroad, Amtrak or Florida’s Brightline, had been unable to acquire the required insurance coverage on time, “You need to cease working,” Gallagher mentioned.
The CRC mentioned in an April 30 letter to the chair and rating member of the Home Transportation and Infrastructure Committee that “forcing 30+ railroads into the market in a single 30-day window might be greater than insurers can service.” The letter suggests recalculating the insurance coverage legal responsibility cap a 12 months forward of time, giving railroads ample time to barter the required protection.
The Passenger Rail Legal responsibility Adjustment Act of 2025 was launched by Rep. Troy Nehls, R-Texas, with co-sponsors Reps. Seth Moulton, D-Mass.; Dina Titus, D-Nev.; Rudy Yakym III, R-Ind.; Burgess Owens, R-Utah; and Eugene Vindman, D-Va.
“This bipartisan repair ensures that rail techniques have a good probability to satisfy new insurance coverage necessities with out jeopardizing service or security,” Moulton mentioned in a press release. “It’s a commonsense step to guard riders, employees, and taxpayers alike.”
The American Quick Line and Regional Railroad Affiliation and Brightline additionally assist the invoice.
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