A Bill to Ensure Transparency in Freight Brokerage and Support Small Trucking Carriers
A Bill to Ensure Transparency in Freight Brokerage and Support Small Trucking Carriers
The Issue
Transparent Broker Practices and Protection for Small Trucking Carriers
A Bill to Ensure Transparency in Freight Brokerage and Support Small Trucking Carriers
Section 1. Short Title.
“Trucking Transparency and Protection Act of 2025.”
Section 2. Findings.
Congress finds the following:
The Backbone of America: The trucking industry is the lifeblood of the U.S. economy, responsible for delivering over 70% of all freight in the United States. It ensures the movement of goods across vast distances, keeping America’s supply chains intact and the economy running smoothly.
Small Carrier Struggles: More than 300,000 small trucking businesses in the U.S. are owned and operated by independent truckers, many of whom operate as owner-operators. These small businesses are integral to the nation’s transportation system, yet they face growing financial pressures from unfair broker practices, including lack of transparency, low payment rates, and rising operational costs such as insurance, fuel, truck payments, and maintenance.
Unfair Broker Practices: Despite the vital role they play in transporting goods across the country, small carriers often find themselves at a severe disadvantage when working with brokers. These brokers regularly take 30% to 60% of the total shipping cost without revealing how much they were paid by the shipper. Worse still, some brokers delay or withhold payments or vanish entirely, leaving honest carriers unpaid. This is unsustainable for small businesses that keep America’s supply chain moving.
Cost Increases Crushing Small Carriers: Beyond broker exploitation, small trucking businesses are being crushed by the rising costs of insurance and fuel. As these costs continue to climb, small carriers are finding it increasingly difficult to survive, much less thrive, in an industry where larger companies are better able to absorb these financial pressures.
Existing Law and Enforcement Gaps: The Federal Motor Carrier Safety Administration (FMCSA) has existing regulations under 49 CFR § 371.3, which mandates that brokers disclose their margins and payment breakdowns. However, these regulations are poorly enforced, and small carriers often find themselves ignored when requesting such information. This lack of enforcement leaves small businesses without legal recourse when brokers fail to act transparently.
Truckers’ Role in the Economy: According to the American Trucking Associations (ATA), nearly 1 in 10 American workers is employed in a trucking-related job, including over 350,000 owner-operators. These independent truckers contribute over $700 billion to the U.S. economy annually and are a critical part of the nation’s economic infrastructure.
Section 3. Purpose.
The purpose of this Act is to:
Require freight brokers to disclose to carriers the rate they received from the shipper for each load they broker.
Strengthen enforcement of existing regulations to ensure brokers are held accountable for fair and transparent practices.
Protect small carriers from being underpaid, overburdened by rising operational costs, or crushed by large brokers’ dominance.
Promote a sustainable and fair business environment for small trucking businesses.
Section 4. Requirements for Freight Brokers.
(a) Disclosure of Rates: All freight brokers must provide a breakdown of the rate received from the shipper to the carrier before or at the time of contracting for the transportation of goods. This disclosure shall include:
The total rate received by the broker from the shipper.
Any fees or deductions taken by the broker.
A clear explanation of why any amount is withheld from the carrier’s payment.
(b) Penalties for Non-Compliance: Any freight broker found in violation of this section shall face a penalty, which may include a fine or suspension of their license to operate as a freight broker.
Section 5. Strengthening Enforcement of Existing Regulations.
(a) Mandatory Broker Margin Disclosure: Brokers will be required to disclose their margin and the shipper’s original payment amount directly on rate confirmations for each load. Brokers must provide this information to the carrier before or at the time of contracting.
(b) Strengthened Enforcement of 49 CFR § 371.3: The FMCSA shall strengthen enforcement of 49 CFR § 371.3, requiring brokers to automatically disclose payment breakdowns after load completion. This will ensure small carriers have access to the information necessary to protect their businesses and hold brokers accountable.
(c) Increased Broker Bond Requirements: The minimum bond requirement for brokers shall be increased from $75,000 to $100,000 or more. This increase is intended to reduce the number of "bad actors" who disappear after completing only a few loads, leaving carriers without payment.
(d) Public Broker Rating System: The Department of Transportation (DOT) will create a public rating system where carriers can rate brokers, similar to the rating system used by Uber drivers. This system will increase transparency and allow carriers to make informed decisions about which brokers they choose to work with.
Section 6. Support for Small Carriers.
(a) Training and Resources: The DOT shall allocate funds to support training programs for small carriers, helping them understand their rights, fair business practices, and the tools available to negotiate better rates with brokers.
(b) Access to Market Data: The DOT shall work to provide small carriers with access to freight rate information, market trends, and industry data. This will allow small carriers to make more informed business decisions, secure better contracts, and remain competitive.
Section 7. Partnership with the Trucking Industry.
(a) Building a Long-Term Partnership: By passing this legislation, Congress, will foster a lasting and meaningful partnership with the trucking industry, particularly small carriers. This partnership is based on mutual respect, transparency, and fairness. Supporting small trucking businesses by providing them with the tools and transparency they need to thrive will strengthen the trucking sector as a whole.
(b) Fostering Economic Growth: This bill will ensure that the trucking industry remains robust and that owner-operators are not left behind in an industry dominated by large corporations. By empowering small trucking businesses, we are investing in the future of America’s economy and maintaining the supply chain that keeps this country moving.
Section 9. Effective Date.
This Act shall take effect 180 days after its enactment.
Conclusion:
By introducing this bill, Congress will demonstrate their commitment to supporting America’s small business owners, particularly those in the trucking industry. Small carriers are crucial to our nation’s economy and must not be left behind as large corporations dominate the industry. This legislation will provide the necessary transparency to ensure that small carriers receive fair compensation for the work they do and that freight brokers operate with the necessary accountability.
This proposal will create a foundation for ongoing collaboration between Congress and the trucking community, allowing for future legislative efforts to address emerging issues in this vital industry.
11
The Issue
Transparent Broker Practices and Protection for Small Trucking Carriers
A Bill to Ensure Transparency in Freight Brokerage and Support Small Trucking Carriers
Section 1. Short Title.
“Trucking Transparency and Protection Act of 2025.”
Section 2. Findings.
Congress finds the following:
The Backbone of America: The trucking industry is the lifeblood of the U.S. economy, responsible for delivering over 70% of all freight in the United States. It ensures the movement of goods across vast distances, keeping America’s supply chains intact and the economy running smoothly.
Small Carrier Struggles: More than 300,000 small trucking businesses in the U.S. are owned and operated by independent truckers, many of whom operate as owner-operators. These small businesses are integral to the nation’s transportation system, yet they face growing financial pressures from unfair broker practices, including lack of transparency, low payment rates, and rising operational costs such as insurance, fuel, truck payments, and maintenance.
Unfair Broker Practices: Despite the vital role they play in transporting goods across the country, small carriers often find themselves at a severe disadvantage when working with brokers. These brokers regularly take 30% to 60% of the total shipping cost without revealing how much they were paid by the shipper. Worse still, some brokers delay or withhold payments or vanish entirely, leaving honest carriers unpaid. This is unsustainable for small businesses that keep America’s supply chain moving.
Cost Increases Crushing Small Carriers: Beyond broker exploitation, small trucking businesses are being crushed by the rising costs of insurance and fuel. As these costs continue to climb, small carriers are finding it increasingly difficult to survive, much less thrive, in an industry where larger companies are better able to absorb these financial pressures.
Existing Law and Enforcement Gaps: The Federal Motor Carrier Safety Administration (FMCSA) has existing regulations under 49 CFR § 371.3, which mandates that brokers disclose their margins and payment breakdowns. However, these regulations are poorly enforced, and small carriers often find themselves ignored when requesting such information. This lack of enforcement leaves small businesses without legal recourse when brokers fail to act transparently.
Truckers’ Role in the Economy: According to the American Trucking Associations (ATA), nearly 1 in 10 American workers is employed in a trucking-related job, including over 350,000 owner-operators. These independent truckers contribute over $700 billion to the U.S. economy annually and are a critical part of the nation’s economic infrastructure.
Section 3. Purpose.
The purpose of this Act is to:
Require freight brokers to disclose to carriers the rate they received from the shipper for each load they broker.
Strengthen enforcement of existing regulations to ensure brokers are held accountable for fair and transparent practices.
Protect small carriers from being underpaid, overburdened by rising operational costs, or crushed by large brokers’ dominance.
Promote a sustainable and fair business environment for small trucking businesses.
Section 4. Requirements for Freight Brokers.
(a) Disclosure of Rates: All freight brokers must provide a breakdown of the rate received from the shipper to the carrier before or at the time of contracting for the transportation of goods. This disclosure shall include:
The total rate received by the broker from the shipper.
Any fees or deductions taken by the broker.
A clear explanation of why any amount is withheld from the carrier’s payment.
(b) Penalties for Non-Compliance: Any freight broker found in violation of this section shall face a penalty, which may include a fine or suspension of their license to operate as a freight broker.
Section 5. Strengthening Enforcement of Existing Regulations.
(a) Mandatory Broker Margin Disclosure: Brokers will be required to disclose their margin and the shipper’s original payment amount directly on rate confirmations for each load. Brokers must provide this information to the carrier before or at the time of contracting.
(b) Strengthened Enforcement of 49 CFR § 371.3: The FMCSA shall strengthen enforcement of 49 CFR § 371.3, requiring brokers to automatically disclose payment breakdowns after load completion. This will ensure small carriers have access to the information necessary to protect their businesses and hold brokers accountable.
(c) Increased Broker Bond Requirements: The minimum bond requirement for brokers shall be increased from $75,000 to $100,000 or more. This increase is intended to reduce the number of "bad actors" who disappear after completing only a few loads, leaving carriers without payment.
(d) Public Broker Rating System: The Department of Transportation (DOT) will create a public rating system where carriers can rate brokers, similar to the rating system used by Uber drivers. This system will increase transparency and allow carriers to make informed decisions about which brokers they choose to work with.
Section 6. Support for Small Carriers.
(a) Training and Resources: The DOT shall allocate funds to support training programs for small carriers, helping them understand their rights, fair business practices, and the tools available to negotiate better rates with brokers.
(b) Access to Market Data: The DOT shall work to provide small carriers with access to freight rate information, market trends, and industry data. This will allow small carriers to make more informed business decisions, secure better contracts, and remain competitive.
Section 7. Partnership with the Trucking Industry.
(a) Building a Long-Term Partnership: By passing this legislation, Congress, will foster a lasting and meaningful partnership with the trucking industry, particularly small carriers. This partnership is based on mutual respect, transparency, and fairness. Supporting small trucking businesses by providing them with the tools and transparency they need to thrive will strengthen the trucking sector as a whole.
(b) Fostering Economic Growth: This bill will ensure that the trucking industry remains robust and that owner-operators are not left behind in an industry dominated by large corporations. By empowering small trucking businesses, we are investing in the future of America’s economy and maintaining the supply chain that keeps this country moving.
Section 9. Effective Date.
This Act shall take effect 180 days after its enactment.
Conclusion:
By introducing this bill, Congress will demonstrate their commitment to supporting America’s small business owners, particularly those in the trucking industry. Small carriers are crucial to our nation’s economy and must not be left behind as large corporations dominate the industry. This legislation will provide the necessary transparency to ensure that small carriers receive fair compensation for the work they do and that freight brokers operate with the necessary accountability.
This proposal will create a foundation for ongoing collaboration between Congress and the trucking community, allowing for future legislative efforts to address emerging issues in this vital industry.
11
The Decision Makers
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Petition created on April 8, 2025