This week, the Equipment Leasing & Finance Association submitted a letter in strong support of the Railroad Supply Institute’s joint petition in Docket No. EP 334, which seeks long-overdue reform of the freight car hire rules adopted more than three decades ago under Interstate Commerce Commission (ICC) authority.
Representing the broad cross-section of equipment lenders and lessors, including several of the nation’s largest freight railcar lessors, ELFA emphasized that fair and market-responsive car hire rules are essential to promoting private investment, competition, and the efficient movement of goods. As detailed in RSI’s petition, the existing Car Hire Arbitration Rule (Rule 25) suppresses compensation to levels insufficient to sustain reinvestment in the national freight car fleet and undermines the market-based framework originally envisioned by the ICC, particularly to the detriment of independent lessors.
ELFA shared concerns about the Board-authorized abeyance and subsequent Association of American Railroads (AAR)-led negotiations failed to produce meaningful reform, citing a closed process dominated by railroad interests with significant ownership stakes in TTX Company. The minimal concessions resulting from this process have prolonged an outdated and unfair rule, discouraging new freight car investment and delaying a competitive, market-responsive car hire system.
ELFA urged the Board to lift the abeyance, reopen its review of Rule 25, and promptly consider RSI’s petition on the merits to advance a fair and transparent resolution. We will continue to monitor the progress of this joint petition.
Fiscal Year 2026 National Defense Authorization Act Passage without Right-to-Repair Provisions
Last month, the U.S. Senate passed the Fiscal Year 2026 National Defense Authorization Act (NDAA) without the inclusion of right-to-repair provisions that had been under consideration in both the Senate and House earlier in the legislative process. ELFA advocated for the removal of these provisions from both chambers’ NDAA packages, emphasizing the potential unintended consequences for equipment finance companies, manufacturers, and their customers.
As the new year begins, ELFA anticipates that similar language may surface in other major legislative vehicles. The association will continue to closely monitor developments and remain engaged with coalition partners to ensure that industry perspectives are appropriately reflected as Congress advances legislation.
Consumer Financial Protection Bureau Section 1071 Notice of Proposed Rulemaking
Two weeks ago, ELFA met with staff at the Consumer Financial Protection Bureau to discuss our December comment letter, as well as the joint letter submitted alongside the U.S. Chamber of Commerce, the Consumer Bankers Association, and other stakeholders.
CFPB staff indicated that the Bureau is still reviewing comments and anticipates finalizing the rulemaking as early as next month.
ELFA will continue to closely monitor the progress of this rulemaking and provide updates to members as developments occur.
