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A bipartisan bill launched throughout the U.S. House of Representatives Oct. 6 would alleviate a coming menace to commuter railroads. The issue concerns obligation insurance coverage protection safety federal laws requires. The value for such insurance coverage protection is predicted to leap nearly 24%, from $323 million to about $400 million subsequent 12 months.
Federal laws requires passenger rail operators to carry adequate insurance coverage protection to cowl as a lot as a certain amount in damages from a single accident. That amount is adjusted every 5 years by the Secretary of Transportation, based on an inflation index. Current laws requires railroads to accumulate wished insurance coverage protection inside 30 days of the reset; the bill extends that to 90 days.
“The insurance coverage protection market could also be very fragile,” Commuter Rail Coalition CEO KellyAnne Gallagher talked about in an interview. “We are going to solely get this stage of insurance coverage protection overseas.”
If a commuter railroad, Amtrak or Florida’s Brightline, had been unable to accumulate the required insurance coverage protection on time, “You have to stop working,” Gallagher talked about.
The CRC talked about in an April 30 letter to the chair and ranking member of the House Transportation and Infrastructure Committee that “forcing 30+ railroads into the market in a single 30-day window is likely to be better than insurers can service.” The letter suggests recalculating the insurance coverage protection obligation cap a 12 months ahead of time, giving railroads ample time to barter the required safety.
The Passenger Rail Obligation 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 restore ensures that rail methods have a great likelihood to fulfill new insurance coverage protection requirements with out jeopardizing service or safety,” Moulton talked about in a press launch. “It’s a commonsense step to protect riders, staff, and taxpayers alike.”
The American Fast Line and Regional Railroad Affiliation and Brightline moreover help the bill.
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