FMCSA to extend broker financial compliance deadline

WASHINGTON — Three major provisions of a rule aimed at protecting trucking companies against unpaid claims from brokers will have to be pushed back a year due to a delay getting a new online registration system up and running.

The rule, “Broker and Freight Forwarder Financial Responsibility,” which took effect in January, contained five provisions: Two had a compliance deadline set for Jan. 16, 2026, and three had a compliance deadline of Jan. 16, 2025.

But because the new registration system is not expected to be available before Jan. 16, 2025, the Federal Motor Carrier Safety Administration will need to extend the compliance date for the three early provisions to meet the Jan. 16., 2026 compliance date instead “to provide regulated entities time to begin using and familiarizing themselves with the system before compliance is required,” according to a notice posted by FMCSA on Friday.

The new registration system is expected to be ready sometime in 2025.

“This action is being proposed because FMCSA has determined that only its forthcoming online registration system will be used to accept filings and track notifications, and this functionality will not be added to its legacy systems,” the notice states.

FMCSA has given the public 15 days to comment on the change.

The compliance deadlines pushed back by this extension are:

Immediate suspension of broker/freight forwarder operating authority. When a broker or freight forwarder’s available financial security falls below $75,000, FMCSA will suspend its operating authority registration.
Surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency. If a surety/trustee becomes aware that a broker or freight forwarder is experiencing financial failure or insolvency, it must notify FMCSA and initiate cancellation of the financial responsibility.
Enforcement authority and penalties for financial responsibility providers who do not comply with the regulations. After notice and an opportunity for a hearing, surety companies or financial institutions who violate the regulation will be ineligible to provide financial responsibility for three years and may be subject to a civil penalty.

The two 2026 provisions, which pertain to broker/freight forwarder trust funds, are not affected by the compliance date change.

While the regulation provides protections for motor carriers, brokers and freight forwarders also benefit from the rule.

The Transportation Intermediaries Association petitioned FMCSA 10 years ago for some of the changes as a way to address rampant freight fraud throughout trucking and freight brokerage.

“This is a huge step towards addressing potential financial fraud and making sure that funding is available to protect motor carriers and brokers,” TIA stated last year.