{"id":886944,"date":"2026-06-09T07:00:33","date_gmt":"2026-06-09T11:00:33","guid":{"rendered":"https:\/\/www.thecompliancecenter.com\/ca\/?p=886944"},"modified":"2026-06-08T20:24:00","modified_gmt":"2026-06-09T00:24:00","slug":"phmsa-penalty-increases-canceled-for-2026","status":"publish","type":"post","link":"https:\/\/www.thecompliancecenter.com\/ca\/help-center\/articles\/phmsa-penalty-increases-canceled-for-2026\/","title":{"rendered":"PHMSA Penalty Increases Canceled for 2026"},"content":{"rendered":"

\"\"PHMSA Penalty Increases Canceled for 2026
\n<\/strong><\/h2>\n

The first time in nearly a decade.<\/em>
\n<\/strong><\/h4>\n

Several times in the past, I have written articles about PHMSA increasing penalties at the start of the year, including my review of the 2025 penalty increases<\/a><\/strong>.<\/p>\n

Well, for the first time in a decade, PHMSA will not be increasing their maximum civil penalties to account for inflation. Agencies responsible for enforcing workplace safety, environmental, and transportation regulations, including the U.S. Department of Transportation (DOT), Environmental Protection Agency (EPA), and Occupational Safety and Health Administration (OSHA), will maintain their current penalty levels throughout 2026.<\/p>\n

What Does This Mean? <\/strong><\/h4>\n

Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Federal agencies are generally required to update civil monetary penalties each year to reflect inflation. These adjustments are calculated using the Consumer Price Index for All Urban Consumers (CPI-U), specifically the October CPI-U data published annually by the Bureau of Labor Statistics (BLS).<\/p>\n

What Happened to the CPI-U Data?<\/strong><\/h4>\n

However, an unusual series of events disrupted that process for 2026. Due to the lapse in Federal appropriations during October and November 2025, the Bureau of Labor Statistics was unable to publish the October 2025 CPI-U data that helps determine the annual adjustment. Because the statute specifically requires the use of this data and does not provide an alternative method, agencies were left without the information needed to perform the adjustment.<\/p>\n

OMB Cancels the 2026 Adjustment<\/strong><\/h4>\n

To address the issue, Office of Management and Budget (OMB) Director Russell T. Vought issued a Memorandum on April 17, 2026. The memorandum formally canceled the 2026 inflation adjustment for civil penalties and directed Federal agencies to continue using the penalty amounts that were in effect for 2025, which I mentioned in last year’s article.<\/p>\n

What This Means for Regulated Businesses<\/strong><\/h4>\n

As a result, organizations that are subject to The Federal regulations will not see increases in maximum civil penalties during 2026. This marks the first year since 2016 that inflation-based penalty adjustments have not been implemented across the Federal government.<\/p>\n

Looking Ahead to 2027<\/strong><\/h4>\n

Looking ahead, the Department plans to conduct a review of the civil penalties administered by its various agencies in 2027 and will determine any future adjustments in accordance with updated guidance from OMB and the requirements of the Inflation Adjustment Act.<\/p>\n

Compliance Remains Essential<\/strong><\/h4>\n

While regulated businesses may welcome a temporary pause in penalty increases, employers and dangerous goods shippers should remember that enforcement programs remain fully active. Compliance with PHMSA, OSHA, EPA, and other Federal regulations remains essential, as existing penalty amounts continue to apply and can still result in significant financial consequences for violations. For more information, review the Department of Labor’s 2026 Federal Civil Penalties Inflation Adjustment notice<\/a><\/strong> published in the Federal Register.<\/p>\n

Avoiding Costly Penalties<\/strong><\/h4>\n

Avoiding penalties starts with proper dangerous goods training. Training is mandatory and provides the knowledge needed to ensure compliance, including selecting the correct packaging, labels, placards, and dangerous goods declarations.<\/p>\n

Do you have questions about Training? Take a look at the\u00a0Training Courses<\/a><\/strong>\u00a0that ICC offers or contact our team of experts at 855.734.5469 or\u00a0send us an email<\/strong>,<\/a>\u00a0we\u2019re happy to help.<\/p>\n

Stay up to date and sign up for our newsletter!
\n<\/a><\/h2>\n

We have all the products, services and training you need to ensure your staff is properly trained and informed.<\/strong><\/em><\/p>\n\n\n\n
\"ShippingShipping Dangerous Goods
\nby Ground Training<\/a><\/td>\n		\"\"UN Approved
\nPackaging and Boxes<\/a><\/td>\n		\"\"Hazard Class Labels<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

PHMSA Penalty Increases Canceled for 2026 The first time in nearly a decade. 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