As highlighted in our Quest News article last November, the Federal Motor Carrier Safety Administration’s (FMCSA) updates to the 2023 financial responsibility requirements for brokers and domestic freight forwarders will take full effect on January 16, 2026.
Under this rule, all brokers and domestic freight forwarders must maintain $75,000 in financial security at all times, either through a BMC-84 surety bond or a BMC-85 trust fund. If the financial security amount falls below the $75,000 threshold, the FMCSA will provide notice that they have seven days to replenish the surety bond or trust fund. Failure to do so will result in operating authority suspension.
A drawdown to the available security may occur due to the following:
- The broker consents to the claim and the surety/trust provider pays the claim.
- The broker fails to respond to a valid notice of claim and surety/trust provider determines that the claim is valid.
- The claim is not resolved and is converted into a judgment against the broker.
Since our last update, the FMCSA has released a Frequently Asked Questions guidance offering key clarifications about the updates to the 2023 financial responsibility:
- Trust provider eligibility matters. Beginning January 16, 2026, only trust providers meeting FMCSA’s updated requirements will be permitted to file and maintain BMC-85 trust agreements.
- Replacement filings must be timely. If a current BMC-85 filing becomes invalid due to an ineligible trust provider, brokers and domestic freight forwarders will have 30 days to replace it with a compliant provider to avoid suspension of operating authority.
- FMCSA Notification. The FMCSA will issue written (and, if available, electronic) notification to a broker or domestic freight forwarder if their trust fund is no longer valid or if they must replenish their trust fund to $75,000 to avoid operating authority suspension.
- Plan now. Verification of the trust provider’s eligibility should occur before January 16, 2026.
Next Steps
To protect their operating authority and avoid costly disruptions, brokers and domestic freight forwarders should:
- Confirm their current surety or trust provider meets FMCSA eligibility criteria.
- If needed, obtain a compliant provider and file an updated BMC-84/BMC-85.
- Monitor their claims to ascertain their financial security stays at or above the required $75,000 threshold.
- Ensure they have processes in place to respond to claims quickly.
With the deadline quickly approaching, proactive planning is the best defense against compliance disruptions. For questions regarding the updated regulations, contact your local Avalon representative.