Moulton, Nehls Introduce Bipartisan Bill to Support Passenger and Commuter Rail Systems
WASHINGTON, D.C. — 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 adjusted—an event tied to inflation and scheduled for early 2026—rail operators have just 30 days to obtain new insurance coverage reflecting the higher cap. The Passenger Rail Liability Adjustment Act would extend that period to 90 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 Congressman Moulton. “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 significantly—potentially nearing $400 million—when 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.
The Passenger Rail Liability Adjustment Act is 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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