New Highway Bill will Increase Automaker Fines
The U.S. House and Senate negotiators have created a five year road and bridge bill that that could triple the cap on fines against automakers. According to a report in the Detroit Free Press, the current highway spending patch expires Friday. Once the new highway bill goes into effect automakers who have violated the motor vehicle safety laws will now have to pay a fine not to exceed $105 million instead of the $35 million. The new legislation is expected to be voted on and signed by President Obama pretty quickly; even though his administration asked for a $400 million multiyear transportation bill.
Congress has been pulling together measures to keep road and bridge projects funded since the last multiyear transportation bill ended in 2009. The final bill will provide states with the proper budget to modernize national highway systems, said U.S. Rep Candice Miller in a recent statement to Detroit Free Press.
The increase in the cap comes in the midst of a large number of recalls from automakers such as General Motors and Volkswagen. The legislation also includes several other provisions that involve vehicle safety, like one that restricts the rental of vehicles with an active recall. The registration will also restore funds that were cut from the National Highway Traffic Administration’s auto safety program.