The federal government has taken steps to provide relief for truckers, announcing plans that could significantly reduce annual registration fees. This announcement follows reports of the government collecting more than necessary in 2022 and beyond – creating an opportunity now to return those funds back into the pockets of hardworking American drivers.
“Now the Unified Carrier Registration (UCR) Plan has determined that the fee collections for the 2024 Registration Year if they proceed at the same level as in the 2022 Registration Year under the same fee schedule, would more than likely exceed the $112,027,059.81 total revenue target for the 2024 Registration Year,” stated a letter sent to DOT Sec. Pete Buttigieg. “The UCR Board respectfully requests that action be taken no later than September 1, 2023, so that the 41 States participating in the UCR Plan and Agreement may begin collecting registration fees on October 1, 2023.”
On March 16, the FMCSA and U.S. Department of Transportation announced a new plan to reduce fees for carriers in 2024. The proposed agreement will benefit those including motor carriers, private companies carrying property across states, brokers and freight forwarders with reductions ranging from just $4 up to an impressive fee reduction amounting at $3,453 based on power-units number. A 9% decrease compared to 2023 means yearly savings for many businesses who use these services regularly.
Per the proposal, the breakdown of fee reduction is listed below.
• 0-2 Power Units: Proposed fee reduction of $4
• 3-5 Power Units: Proposed fee reduction of $10
• 6-20 Power Units: Proposed fee reduction of $21
• 21-100 Power Units: Proposed fee reduction of $75
• 101-1,000 Power Units: Proposed fee reduction of $354
• More than 1,000 Power Units: Proposed fee reduction of up to $3,453
While this could mean significant savings if passed, it’s important for truckers and carriers to understand that the reduction is aligned with the DOT’s registration collection targets, as well as more than $4 million in administrative costs. This means that these budgets could be revised upwards in the same fashion that the DOT did with truck driver fines in January. The UCR Board indicated that the proposed rule could be changed as needed. Should the FMCSA budget change or revenue no longer meet the agency’s goals, the fees could remain the same or even increase.
Comments can be made regarding the proposed rule at the Federal Register through April 17, 2023.
Source: Truckers Report
