Predatory Truck Leasing Prevention Act of 2025
- Bill Number
- H.R. 5423
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2025-09-18: Referred to the Subcommittee on Highways and Transit.
- Last Updated
- 2025-10-07T08:05:43Z
AI-Generated Summary
Purpose
This legislation aims to prevent the use of predatory lease-purchase programs for commercial trucks by certain motor carriers, protecting drivers from arrangements that limit their equity or control their work and finances.
Key Provisions
- Prohibition Requirement: Within one year of enactment, the Secretary of Transportation must issue regulations banning predatory commercial motor vehicle lease-purchase programs for motor carriers transporting goods under federal jurisdiction (subchapter I of chapter 135 of title 49).
- Driver Relief Process: The regulations must include a mechanism for drivers to seek relief from lease-purchase agreement terms if the Secretary determines the agreement violates the new rules, provided the agreement was signed after the regulations take effect.
- Definitions:
- A "predatory commercial motor vehicle lease-purchase agreement program" refers to the overall setup between a motor carrier and driver—including the lease, work contract, and related practices (such as recruitment, operations, taxes, and finances)—where the carrier controls the driver's work, pay, and debts, preventing the driver from building or keeping equity in the truck.
- A "lease-purchase agreement" is a contract where a driver leases a truck from a motor carrier (or its affiliate) to haul freight while working for that same carrier under a separate agreement.
Significant Changes to Existing Law
- The bill adds a new subsection (c) to Section 14102 of title 49, United States Code, introducing a federal prohibition and regulatory framework for these lease-purchase arrangements.
- It expands existing authority over motor carrier practices by requiring specific regulations and a relief process for affected drivers.
Potential Impacts
- Government Agencies: The Department of Transportation must develop and enforce new regulations and handle driver relief requests, increasing its oversight role in trucking contracts.
- Citizens: Truck drivers may gain protections against unfair financial arrangements, potentially improving their economic stability and ability to own trucks outright.
- International Relations: No direct effects are outlined in the legislation.
Main Stakeholders Affected
- Motor carriers that use lease-purchase programs for their drivers.
- Individual truck drivers entering into such agreements.
- The Department of Transportation, responsible for rulemaking and enforcement.
- The broader freight and trucking industry, which may need to adjust business practices.
Notable Legal, Constitutional, or Political Implications
- The legislation grants the executive branch (via the Secretary) expanded regulatory power over private contracts in interstate commerce, potentially raising questions about the scope of federal authority under the Commerce Clause.
- It introduces a process for voiding or modifying private agreements post-enactment, which could affect contract law enforcement in the trucking sector.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Brownley, Julia [D-CA-26]
Cosponsors (1)
Del. Norton, Eleanor Holmes [D-DC-At Large]
Recent Actions
- 2025-09-18: Referred to the Subcommittee on Highways and Transit.
- 2025-09-17: Referred to the House Committee on Transportation and Infrastructure.
- 2025-09-17: Introduced in House
- 2025-09-17: Introduced in House
Bill Versions
- Predatory Truck Leasing Prevention Act of 2025 — issued 2025-09-17 — PDF (3 pages)