A bipartisan bill introduced in the U.S. House of Representatives Oct. 6 would alleviate a coming threat to commuter railroads. The issue concerns liability insurance coverage federal law requires. The cost for such insurance is expected to jump nearly 24%, from $323 million to about $400 million next year.
Federal law requires passenger rail operators to carry enough insurance to cover up to a certain amount in damages from a single accident. That amount is adjusted every five years by the Secretary of Transportation, based on an inflation index. Current law requires railroads to obtain needed insurance within 30 days of the reset; the bill extends that to 90 days.
“The insurance market is very fragile,” Commuter Rail Coalition CEO KellyAnne Gallagher said in an interview. “We can only get this level of insurance overseas.”
If a commuter railroad, Amtrak or Florida’s Brightline, were unable to obtain the required insurance on time, “You have to stop operating,” Gallagher said.
The CRC said 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 one 30-day window could be more than insurers can service.” The letter suggests recalculating the insurance liability cap a year ahead of time, giving railroads sufficient time to negotiate the required coverage.
The Passenger Rail Liability Adjustment Act of 2025 was introduced 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 fix ensures that rail systems have a fair chance to meet new insurance requirements without jeopardizing service or safety,” Moulton said in a statement. “It’s a commonsense step to protect riders, workers, and taxpayers alike.”
The American Short Line and Regional Railroad Association and Brightline also support the bill.
