• Overview
  • Key Points You Need to Know
• Resources and Additional Information
  • Federal Register
  • Broker and Freight Forwarder Rule: Notification, Educational, and Compliance Guide (Small Entity Compliance Guide)

Overview

Effective January 16. 2026, brokers, freight forwarders and financial responsibility providers will need to comply with new rules regarding broker/freight forwarder financial responsibility. These changes are intended to protect motor carriers and shippers by ensuring adequate funds are available to satisfy unpaid freight charges.

Key Points You Need to Know:

A. Assets Readily Available (Trust Funds for BMC‑85)

• The only acceptable assets are Cash, Irrevocable letters of credit issued by Federally insured depository institutions, U.S. Treasury bonds.

Why it matters: Eliminates ambiguity about acceptable assets and prevents use of asset types that don’t meet MAP‑21 criteria.

B. Immediate Suspension of Operating Authority

• If a broker’s or freight forwarder’s available financial security falls below $75,000 and is not replenished within 7 calendar days, FMCSA will suspend the broker or freight forwarder’s operating authority.
• Surety providers (BMC‑84) and financial institutions (BMC‑85) must notify FMCSA when the required minimum is breached and not timely restored.

Why it matters: Ensures more protection for motor carriers and shippers; lapses can quickly lead to suspension.

Details on how the surety and trust providers will notify FMCSA of the drawdown below $75,000 or the replenishment of the security will be available on this page closer to the compliance date.

C. Surety and Trust Provider Duties in Financial Failure or Insolvency

• Filing bankruptcy under Title 11 U.S. Code does not constitute insolvency under the rule.
• The rule details what surety companies/financial institutions and FMCSA must do once they become aware of a broker/forwarder’s financial failure or insolvency.

Why it matters: Clarifies roles, timelines, and claim handling to protect claimants and ensure orderly resolution.

D. Enforcement Authority (Penalties and Ineligibility)

• FMCSA adds penalties in 49 CFR part 386, appendix B, and implements authority granted in MAP‑21 to suspend surety or trust providers who fail to comply with the regulations.
• A surety company or financial institution found in violation of 49 U.S.C. 13906 or § 387.307 faces a monetary penalty and a mandatory 3‑year ineligibility period to provide broker/freight forwarder financial security.

E. Who Can Serve as BMC‑85 Trustees.

• Loan and finance companies are no longer eligible to serve as BMC‑85 trustees.
• If you believe your current provider will not meet the new requirements effective January 16, 2026 ( https://www.federalregister.gov/d/2023-25312/p-315 ), you may want to consider obtaining a new surety or trust provider to file a BMC-84 or BMC-85 with FMCSA. Please note, FMCSA does not recommend or endorse any specific financial responsibility providers.
• To switch from your existing BMC-85 to a new BMC-85 or BMC-84 with a different provider, your new provider must submit the correct form(s) through its FMCSA E-filer account. Once filed, this will replace your current filing.
• If your chosen provider does not yet have an E-filer account, it must contact FMCSA to register as a financial responsibility provider before filing.
   

Why it matters: Tightens oversight and aligns trustees with institutions better suited to meet liquidity and financial safety standards.

Resources and Additional Information

Federal Register

• The Broker and Freight Forwarder Financial Responsibility rule can be found at the Federal Register here: www.federalregister.gov/documents/2023/11/16/2023-25312/broker-and-freight-forwarder-financial-responsibility.
• FMCSA subsequently extended the compliance date for this rule, and the Federal Register notice can be found here: Federal Register :: Broker and Freight Forwarder Financial Responsibility; Extension of Compliance Date

Broker and Freight Forwarder Rule: Notification, Educational, and Compliance Guide (Small Entity Compliance Guide)

For more detailed information, please see the Broker and Freight Forwarder Rule Notification Educational and Compliance Guide