FMCSA rule cracking down on freight brokers who don’t pay truckers now in effect

A Federal Motor Carrier Safety Administration (FMCSA) rule that cracks down on freight brokers and forwarders who fail to pay carriers goes into effect today.

Effective on Friday, January 16, 2026, FMCSA’s “Broker and Freight Forwarder Financial Responsibility” Final Rule is fully in effect.

Rule Allows FMCSA To Immediately Suspend Broker Operating Authority

“This rule will result in benefits to motor carriers. FMCSA is aware that some brokers choose to withhold payment to motor carriers for services rendered. Motor carriers can then submit claims to the financial responsibility provider to receive payment … FMCSA believes that most brokers operate with integrity and uphold the contracts made with motor carriers and shippers. However, a minority of brokers with unscrupulous business practices can create unnecessary financial hardship for unsuspecting motor carriers,” the agency said.

The rule amends regulations pertaining to financial responsibility requirements for freight brokers and freight forwarders the following five areas:

1. Assets readily available. Regulations require that broker/freight forwarder trust funds consist of “assets readily available to pay claims without resort to personal guarantees or collection of pledged accounts receivable.” The Final Rule updates the definition of assets readily available to those that are stable in value and can be easily liquidated within 7 calendar days of an event that triggers a payment from the trust.
2. Immediate suspension of broker/freight forwarder operating authority. This provision allows FMCSA to suspend a broker or freight forwarder’s operating authority registration when their available financial security falls below $75,000. The available financial security could occur because a broker or freight forwarder consents to a drawdown, or if a broker or freight forwarder does not respond to a valid notice of claim from a surety or trust provider, or if a claim against the broker or freight forwarder is converted to a judgment. If the available financial security falls below $75,000 and the broker or freight forwarder does not replenish funds within 7 calendar days after notice from FMCSA, the Agency will issue a notification of suspension of operating authority to the broker or freight forwarder.
3. Surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency. This requires that if the surety/trustee becomes aware that a broker or freight forwarder is experiencing financial failure or insolvency, it must notify FMCSA and initiate cancelation of the financial responsibility. FMCSA will then publish a notice of failure in the FMCSA Register. If the broker or freight forwarder subsequently cures the default, and the surety company or financial institution reinstates the bond or trust or the broker or freight forwarder obtains a new bond or trust, FMCSA will lift the suspension notice and update the FMCSA Register.
4. Enforcement authority. The provision establishes FMCSA authority for the suspension of a surety or trust fund provider’s authority in certain circumstances.
5. Entities eligible to provide trust funds for brokers and freight forwarders. FMCSA removes loan and finance companies from the list of providers eligible to serve as trustees, because this type of institution is not subject to the rigorous Federal regulations applicable to chartered depository institutions or to the state regulations applicable to insurance companies. Loan and finance companies will now be prohibited from offering trusts unless they obtain certification to operate as another type of financial institution that remains on the list of eligible providers.

The rule was published in November 2023 and officially went into effect in January 2024 but compliance dates were pushed back to January 2026 to provide regulated entities time to use and familiarize themselves with an online registration system.

Truckers Cheer FMCSA’s Move To Fight Back Against Bad Brokers

The Owner-Operator Independent Drivers Association (OOIDA) has pushed for the rule for more than a decade and cheered the fact that truckers now have an extra measure of protection from broker misconduct.

“OOIDA welcomes FMCSA’s Final Rule on Broker and Freight Forwarder Financial Responsibility. This is a step forward that helps make sure truckers get paid what they’re owed on time in cases of theft, damage, and insolvency. Most importantly, the rule requires FMCSA to suspend brokers who do not maintain the minimum $75,000 bond. This will assist carriers in determining if a broker has legitimate finances before hauling a load. OOIDA has fought for these changes for nearly 15 years, and today marks progress in holding bad brokers accountable. However, this rule alone does not solve the problem, and we will continue fighting for more reforms until truckers no longer have to pay the price for broker misconduct,” said OOIDA President Todd Spencer.

FMCSA’s freight broker transparency rulemaking is expected to publish in May 2026.