US Rail Liability: Amtrak, Brightline Benefit from HR 5697

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Introduction

U.S. Representatives Seth Moulton (D-Mass.) and Troy Nehls (R-Texas) introduced the Passenger Rail Liability Adjustment Act (H.R. 5697) earlier this month to provide commuter, passenger, and short-line railroads with additional time to secure liability insurance following adjustments to insurance caps.

Main Content

Legislative Proposal

The proposed legislation, H.R. 5697, aims to modify the timeframe for railroads to obtain liability insurance. Currently, railroads have only 30 days to secure new insurance coverage when the federal liability cap for passenger railroads is adjusted due to inflation. This bill seeks to extend that period.

Current Liability Requirements

Affected railroads are presently mandated to maintain $323 million in liability coverage to address third-party claims. This coverage is essential to protect railroads from potential financial burdens arising from incidents involving passengers or other parties.

Anticipated Inflationary Adjustment

The federal liability cap is subject to adjustments based on inflation. In early 2026, the cap is expected to increase significantly, potentially reaching close to $400 million. This rise reflects inflation over the preceding five years.

Impact on Railroads

Extending the insurance procurement period from 30 to 90 days aims to alleviate pressure on various rail systems. The commuter rail systems, Amtrak, Brightline, and short lines are expected to benefit from the extended timeframe.

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Conclusion

The Passenger Rail Liability Adjustment Act (H.R. 5697) proposes to extend the period for railroads to secure liability insurance when the federal cap is adjusted due to inflation, specifically from 30 to 90 days. This change is intended to assist commuter rail systems, Amtrak, Brightline, and short lines in managing the process of updating their insurance coverage.

Company Summary

Amtrak: Amtrak is a passenger railroad service.

Brightline: Brightline is a privately owned and operated intercity passenger rail service in Florida.

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