The Federal Motor Carrier Safety Administration (FMCSA) has announced that new rules for brokers and freight forwarders will officially go into effect on January 16, 2026. These rules, while strict, are aimed at addressing long-standing issues such as fraud, non-payment to carriers, and insufficient financial security among certain brokers.

With this regulation, FMCSA is seeking to protect motor carriers from unreliable intermediaries and ensure financial accountability across the freight industry. A key focus of the new rulemaking is improving the quality and liquidity of financial security instruments, and establishing clearer pathways for suspension and enforcement.

FMCSA extended the compliance deadline to give the industry sufficient time to understand and adjust to the changes.

What the New Rules Address

The final rule brings major changes in four key areas:

1. Qualified Trust Fund Assets

FMCSA is now limiting which types of assets can be held in broker and freight forwarder trust funds. Only assets that are:

• Safe
• Simple to value
• Easily liquidated (within seven days)

will be allowed. The three approved asset types include:

• Cash
• Irrevocable letters of credit from federally insured banks
• U.S. Treasury bonds

This move closes the door on using complex, illiquid, or volatile assets that can delay payouts to motor carriers in the event of a broker default.

2. Faster Suspensions for Inadequate Financial Security

FMCSA will now require all brokers and freight forwarders to maintain at least $75,000 in financial security at all times. If a broker’s security drops below that threshold:

• The broker will receive a notification letter.
• The broker will have seven days to restore compliance.
• Failure to restore the full amount will result in immediate suspension of operating authority.

This rule ensures that undercapitalized or financially unstable brokers are removed from the marketplace quickly, reducing risk for carriers.

3. Reporting Requirements for Financial Institutions

Entities that provide or manage broker financial security (such as BMC-85 providers) are now required to:

• Report brokers who fall below the $75,000 minimum
• Report any suspected financial instability

Failure to report may result in:

• Civil penalties of up to $12,882 per violation
• A potential three-year ban from serving as a financial security provider

This increases oversight and accountability, and ensures financial providers take an active role in maintaining compliance.

4. Approved Trustee Institutions for BMC-85 Filings

Not all financial institutions are eligible to serve as trustees for BMC-85 trust fund agreements. FMCSA now requires trustees to be regulated and supervised financial institutions, such as:

• FDIC-insured banks
• Credit unions
• Trust companies
• Savings banks
• Insurance companies
• U.S. branches of foreign banks
• Industrial banks
• Other institutions under state or federal banking oversight

This ensures that trust funds are handled by institutions with the capacity, structure, and oversight to manage funds responsibly and in the best interest of carriers.

What Brokers and Forwarders Need to Do Now

With the January 16, 2026 deadline approaching, affected parties must begin compliance preparations immediately. Key action steps include:

• Reviewing your current trust fund structure to ensure only approved asset types are held
• Confirming your financial security is at or above the $75,000 minimum
• Working only with approved financial institutions for BMC-85 agreements
• Consulting legal or compliance professionals to avoid exposure to penalties or suspension

Companies should not wait until the deadline to begin making these changes. Early compliance will avoid last-minute issues that could threaten your operating authority or ability to broker freight.

These updated FMCSA rules represent a strong step forward in protecting motor carriers, improving financial transparency, and preventing fraud within the freight brokerage and forwarding space. By enforcing tighter control over trust fund assets and enabling faster enforcement, FMCSA is putting integrity at the forefront of the logistics industry.

Brokers and forwarders should view this not just as a regulatory burden, but as an opportunity to strengthen their business practices and stand out as reliable partners in an increasingly competitive market.

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