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Surface Transportation Board.
Final rule.
The Surface Transportation Board (Board) is issuing a final rule to implement the annual inflationary adjustment to its civil monetary penalties, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
This final rule is effective January 14, 2026.
Amanda Gorski at (202) 915-8453. If you require an accommodation under the Americans with Disabilities Act, please call (202) 245-0245.
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), enacted as part of the Bipartisan Budget Act of 2015, Public Law 114-74, 701, 129 Stat. 584, 599-601, requires agencies to adjust their civil penalties for inflation annually, beginning on July 1, 2016, and no later than January 15 of every year thereafter. In accordance with the 2015 Act, annual inflation adjustments are to be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for October of the previous year and the October CPI-U of the year before that. Penalty level adjustments should be rounded to the nearest dollar. Due to the lapse in Federal government appropriations from October 1, 2025, through November 12, 2025, the Bureau of Labor Statistics, which is responsible for production of the CPI-U, did not release a CPI-U for October 2025. Therefore, the Board is basing its annual inflation adjustment for 2026 on the percent change between the CPI-U for November 2025 and the CPI-U for November 2024. Should additional guidance or data relevant to this calculation be released following the issuance of this decision, the Board will issue an amended decision, as appropriate.
The statutory definition of civil monetary penalty covers various civil penalty provisions under the Rail (Part A); Motor Carriers, Water Carriers, Brokers, and Freight Forwarders (Part B); and Pipeline Carriers (Part C) provisions of the Interstate Commerce Act, as amended. The Board's civil (and criminal) penalty authority related to rail transportation is codified at 49 U.S.C. 11901-11908. The Board's penalty authority related to motor carriers, water carriers, brokers, and freight forwarders appears at 49 U.S.C. 14901-14916. The Board's penalty authority related to pipeline carriers is codified at 49 U.S.C. 16101-16106.[1] The Board has regulations at 49 CFR part 1022 that codify the method set forth in the 2015 Act for annually adjusting for inflation the civil monetary penalties within the Board's jurisdiction.
As set forth in this final rule, the Board is amending 49 CFR part 1022 to make an annual inflation adjustment to the civil monetary penalties in conformance with the requirements of the 2015 Act. The adjusted penalties set forth in the rule will apply only to violations that occur after the effective date of this regulation.
The annual adjustment adopted here is calculated by multiplying each current penalty by a cost-of-living adjustment factor of 1.02735, which reflects the percentage change between the November 2025 CPI-U (324.122) and the November 2024 CPI-U (315.493). The table at the end of this decision shows the statutory citation for each civil penalty, a description of the provision, the adjusted statutory civil penalty level for 2025, and the adjusted statutory civil penalty level for 2026.
The final rule set forth at the end of this decision is being issued without notice and comment pursuant to the ( printed page 1448) rulemaking provision of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), which does not require that process “when the agency for good cause finds” that public notice and comment are “unnecessary.” Here, Congress has mandated that the agency make an annual inflation adjustment to its civil monetary penalties. The Board has no discretion to set alternative levels of adjusted civil monetary penalties because the amount of the inflation adjustment must be calculated in accordance with the statutory formula.[2] Given the absence of discretion, the Board has determined that there is good cause to promulgate this rule without soliciting public comment and to make this regulation effective immediately upon publication.
The Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612, generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because the Board has determined that notice and comment are not required under the APA for this rulemaking, the requirements of the RFA do not apply.
Pursuant to the Congressional Review Act, 5 U.S.C. 801-808, the Office of Information and Regulatory Affairs has designated this rule as a non-major rule, as defined by 5 U.S.C. 804(2).
This final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3521.
It is ordered:
1. The Board amends its rules as set forth in this decision. Notice of the final rule will be published in the Federal Register .
2. This decision is effective on its date of publication in the Federal Register .
Decided: January 9, 2026.
By the Board, Board Members Fuchs, Hedlund, and Schultz.
Jeffrey Herzig,
Clearance Clerk.
For the reasons set forth in the preamble, part 1022 of title 49, chapter X, of the Code of Federal Regulations is amended as follows:
1. The authority citation for part 1022 continues to read as follows:
2. Revise § 1022.4(b) to read as follows:
(b) The cost-of-living adjustment required by the statute results in the following adjustments to the civil monetary penalties within the jurisdiction of the Board:
| U.S. Code citation | Civil monetary penalty description | 2025—Penalty amount | 2026—Adjusted penalty amount 1 |
|---|---|---|---|
| EP 716_10 (2025) | EP 716_11 (2026) | ||
| Rail Carrier | |||
| 49 U.S.C. 11901(a) | Unless otherwise specified, maximum penalty for each knowing violation under this part, and for each day | 9,970 | 10,243 |
| 49 U.S.C. 11901(b) | For each violation under sec. 11124(a)(2) or (b) | 998 | 1,025 |
| 49 U.S.C. 11901(b) | For each day violation continues | 51 | 52 |
| 49 U.S.C. 11901(c) | Maximum penalty for each knowing violation under secs. 10901-10906 | 9,970 | 10,243 |
| 49 U.S.C. 11901(d) | For each violation under sec. 11123 or 11124(a)(1) | 198-998 | 203-1,025 |
| 49 U.S.C. 11901(d) | For each day violation continues | 100 | 103 |
| 49 U.S.C. 11901(e)(1), (4) | For each violation under secs. 11141-11145, for each day | 998 | 1,025 |
| 49 U.S.C. 11901(e)(2), (4) | For each violation under sec. 11144(b)(1), for each day | 198 | 203 |
| 49 U.S.C. 11901(e)(3)-(4) | For each violation of reporting requirements, for each day | 198 | 203 |
| Motor and Water Carrier | |||
| 49 U.S.C. 14901(a) | Minimum penalty for each violation and for each day | 1,365 | 1,402 |
| 49 U.S.C. 14901(a) | For each violation under sec. 13901 or 13902(c) | 13,647 | 14,020 |
| 49 U.S.C. 14901(a) | For each violation related to transportation of passengers | 34,116 | 35,049 |
| 49 U.S.C. 14901(b) | For each violation of the hazardous waste rules under sec. 3001 of the Solid Waste Disposal Act | 27,293-54,586 | 28,039-56,079 |
| 49 U.S.C. 14901(d)(1) | Minimum penalty for each violation of household good regulations, and for each day | 1,992 | 2,046 |
| 49 U.S.C. 14901(d)(2) | Minimum penalty for each instance of transportation of household goods if broker provides estimate without carrier agreement | 19,941 | 20,486 |
| 49 U.S.C. 14901(d)(3) | Minimum penalty for each instance of transportation of household goods without being registered | 49,848 | 51,211 |
| 49 U.S.C. 14901(e) | Minimum penalty for each violation of a transportation rule | 3,988 | 4,097 |
| ( printed page 1449) | |||
| 49 U.S.C. 14901(e) | Minimum penalty for each additional violation | 9,970 | 10,243 |
| 49 U.S.C. 14903(a) | Maximum penalty for undercharge or overcharge of tariff rate, for each violation | 199,408 | 204,862 |
| 49 U.S.C. 14904(a) | For first violation, rebates at less than the rate in effect | 398 | 409 |
| 49 U.S.C. 14904(a) | For all subsequent violations | 500 | 514 |
| 49 U.S.C. 14904(b)(1) | Maximum penalty for first violation for undercharges by freight forwarders | 998 | 1,025 |
| 49 U.S.C. 14904(b)(1) | Maximum penalty for subsequent violations | 3,988 | 4,097 |
| 49 U.S.C. 14904(b)(2) | Maximum penalty for other first violations under sec. 13702 | 998 | 1,025 |
| 49 U.S.C. 14904(b)(2) | Maximum penalty for subsequent violations. | 3,988 | 4,097 |
| 49 U.S.C. 14905(a) | Maximum penalty for each knowing violation of sec. 14103(a), and knowingly authorizing, consenting to, or permitting a violation of sec. 14103(a) or (b) | 19,941 | 20,486 |
| 49 U.S.C. 14906 | Minimum penalty for first attempt to evade regulation | 2,730 | 2,805 |
| 49 U.S.C. 14906 | Minimum amount for each subsequent attempt to evade regulation | 6,823 | 7,010 |
| 49 U.S.C. 14907 | Maximum penalty for recordkeeping/reporting violations | 9,970 | 10,243 |
| 49 U.S.C. 14908(a)(2) | Maximum penalty for violation of sec. 14908(a)(1) | 3,988 | 4,097 |
| 49 U.S.C. 14910 | When another civil penalty is not specified under this part, for each violation, for each day | 998 | 1,025 |
| 49 U.S.C. 14915(a)(1)-(2) | Minimum penalty for holding a household goods shipment hostage, for each day | 15,846 | 16,279 |
| 49 U.S.C. 14916(c)(1) | Maximum penalty for each knowing violation under sec. 14916(a) for unlawful brokerage activities | 13,647 | 14,020 |
| Pipeline Carrier | |||
| 49 U.S.C. 16101(a) | Maximum penalty for violation of this part, for each day | 9,970 | 10,243 |
| 49 U.S.C. 16101(b)(1), (4) | For each recordkeeping violation under sec. 15722, each day | 998 | 1,025 |
| 49 U.S.C. 16101(b)(2), (4) | For each inspection violation liable under sec. 15722, each day | 198 | 203 |
| 49 U.S.C. 16101(b)(3)-(4) | For each reporting violation under sec. 15723, each day | 198 | 203 |
| 49 U.S.C. 16103(a) | Maximum penalty for improper disclosure of information | 1,992 | 2,046 |
| 1 Because October 2025 Consumer Price Index data was not available by the January 15 statutory deadline for publishing adjusted penalty amounts, the cost-of-living adjustment for 2026 reflects the percentage by which the November 2025 Consumer Price Index exceeds the November 2024 Consumer Price Index. | |||
1. The Board also has various criminal penalty authority, enforceable in a federal criminal court. Congress has not, however, authorized federal agencies to adjust statutorily prescribed criminal penalty provisions for inflation, and this rule does not address those provisions.
Back to Citation2. As noted above, the Board is using November CPI-U data because October CPI-U data for 2025 was not available by the January 15 statutory deadline for this decision.
Back to Citation[FR Doc. 2026-00535 Filed 1-13-26; 8:45 am]
BILLING CODE 4915-01-P