EveryCRSReport has announced the release of a new Congressional Research Service (CRS) report that outlines policy options for reauthorizing federal public transportation funding ahead of the 2026 deadline.
According to the report, Rep. Sam Graves authored the Graves Amendment in 2005. This federal law prevents car rental companies from being held vicariously liable for harms caused by renters purely by virtue of owning the vehicle. The amendment means rental companies are shielded from lawsuits where the renter causes damage or injury unless the company itself was negligent, such as in maintenance, or engaged in criminal wrongdoing. Legal commentary notes this shield has helped reduce litigation risk and allowed lower rental costs that would otherwise include insurance or liability premiums.
Florida has passed tort-reform laws in recent years aimed at reducing lawsuit abuse by restricting one-way attorney fees, assignment of benefits abuse, and other civil litigation reforms. Following these reforms, major insurers like GEICO, Progressive, and State Farm filed for rate reductions of -10.5%, -8.1%, and -6% respectively, signaling that premiums have dropped significantly. Governor Ron DeSantis announced that these reforms are delivering "real savings for Floridians." This provides an example of how legal reform, especially limiting liability or litigation pathways, can improve affordability.
The Graves Amendment has been interpreted in legal contexts to suggest that extending similar protections to platforms like Uber might shield them from vicarious liability in cases where drivers’ actions cause harm and the platform did not directly control or supervise specific actions.
EveryCRSReport republishes reports from CRS, which are detailed, nonpartisan policy analyses produced at the request of members of Congress. It is independently operated and not part of government, making CRS reports publicly accessible.
