MOULTON, NEHLS INTRODUCE BIPARTISAN BILL TO SUPPORT PASSENGER AND COMMUTER RAIL SYSTEMS

The following information was released by the office of Massachusetts Rep. Seth Moulton:

Congressman Seth Moulton (MA-06) joined Congressman Troy Nehls (TX-22) in introducing the Passenger Rail Liability Adjustment Act, a bipartisan bill to give commuter and passenger rail systems more time to secure liability insurance following adjustments to insurance caps.

Under current law, when the federal liability cap for passenger railroads is adjustedan event tied to inflation and scheduled for early 2026rail operators have just 30 daysto obtain new insurance coverage reflecting the higher cap. ThePassenger Rail Liability Adjustment Actwould extend that period to90 days in 2026, helping rail operators secure better insurance rates and avoid disruptions in service.

"Commuter rail plays a vital role in connecting communities across Massachusetts and the nation,"said CongressmanMoulton."This bipartisan fix ensures that rail systems have a fair chance to meet new insurance requirements without jeopardizing service or safety. It's a commonsense step to protect riders, workers, and taxpayers alike."

The liability cap, currently set at$323 million, is expected to rise significantlypotentially nearing$400 millionwhen it's next adjusted in 2026 due to inflation from the past five years. Extending the insurance procurement window from 30 to 90 days will ease the pressure on the 32 commuter rail systems, Amtrak, Brightline, and short line operators that all must obtain updated insurance coverage concurrently.

ThePassenger Rail Liability Adjustment Actis supported by the American Short Line and Regional Railroad Association (ASLRRA), the Commuter Rail Coalition, and Brightline,all of whom have warned that the current 30-day window is problematic and could lead to higher premiums or lapses in coverage.

This bill provides an immediate, targeted solution for the 2026 adjustment period, while lawmakers continue working toward a broader, long-term reform as part of the upcoming Surface Transportation Reauthorization.

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