Regulations

The federal government’s Spring Unified Agenda lays out what’s next for trucking, and the stakes are high. Over the next two years, you may see less red tape in areas like recordkeeping and reporting, but also tougher requirements on safety equipment and registration.

For truckers, that means adjusting contracts, planning for possible costs, and keeping documentation sharp for lenders. Understanding these changes today can help you steer clear of uncertainty tomorrow.

Why The Spring Regulatory Agenda Matters

The Unified Agenda is a semi-annual update of the federal government’s regulatory priorities. For trucking, it highlights which rules the Federal Motor Carrier Safety Administration (FMCSA) and the Department of Labor (DOL) are working on, when you can expect proposals, and how they could affect your bottom line.

Industry groups like the American Trucking Associations and OOIDA closely follow these updates because the outcomes shape driver classification, financing, and compliance across the board.

At the same time, technology is accelerating change. As tools like telematics and AI become more common, regulators are beginning to account for their role in safety, efficiency, and data transparency.

With the DOL shifting its approach to independent contractor enforcement and FMCSA advancing both deregulatory and safety proposals, 2025–26 will bring a mixed bag of relief and new obligations.

What’s Changing with the Independent Contractor Rule

In May 2025, the DOL issued Field Assistance Bulletin 2025-1, announcing that investigators will no longer enforce the 2024 independent contractor rule when applying the Fair Labor Standards Act.

Instead, they will use the older, more flexible “economic reality” test described in Fact Sheet #13 and in Opinion Letter FLSA2019-6.

For you, that means:

• Federal enforcement is less likely to reclassify independent contractors as employees.
• The 2024 rule still technically exists, and private lawsuits can cite it.
• State laws, such as California’s ABC test, continue to apply if you operate across state lines.

The bottom line: classification risks remain uneven, and lenders may still ask for documentation showing you operate as an independent business.

Key FMCSA Regulations to Watch in 2025-26

The Spring 2025 Unified Agenda highlights several FMCSA rulemakings that could directly affect carriers and drivers:

• Unified Registration System (URS) and MAP-21 Enhancements: An NPRM is planned by March 2026 to update registration rules, revising how carrier and broker authority is granted, suspended, or revoked.
• Record Retention Rule Changes: By May 2026, FMCSA intends to revise 49 CFR Part 379 to remove overlapping or burdensome recordkeeping requirements, easing paperwork for carriers.
• Automated Driving Systems (ADS)-equipped commercial vehicles: An NPRM expected by May 2026 will propose amendments to allow safe operation of ADS-equipped commercial trucks on U.S. roads.
• Drug and Alcohol Clearinghouse Revisions: By May 2026, FMCSA will propose updates to expand how driver violation data is reported and accessed.
• Electronic Logging Device (ELD) Rule Revisions: An NPRM expected by May 2026 will streamline and clarify regulatory text and technical specifications for ELDs.
• Cargo Securement Updates: FMCSA plans to align U.S. cargo securement rules with Canadian standards, with an NPRM due by May 2026.
• Household-Goods Carrier Registration: A proposed rule by May 2026 would require carriers to pass a proficiency exam before registration.
• Medical Qualification Standards (Seizures): By May 2026, FMCSA may revise requirements for drivers with seizure histories, easing restrictions under specific safety conditions.

These proposals could bring clearer registration processes, less paperwork, and new standards for technology integration. For carriers, that means fewer compliance headaches in some areas but also the need to prepare for changes in safety requirements and qualification standards.

Compliance Relief on the Horizon

FMCSA has several rules in the pipeline that aim to reduce outdated or duplicative requirements:

• Spare Fuses Requirement: A final rule expected in 2025 will eliminate the mandate for CMVs to carry spare fuses, which FMCSA deems outdated.
• ELD User’s Manual Rule: A final rule this year will rescind the requirement to keep a paper ELD manual in the cab.
• Record Retention Revisions: By May 2026, FMCSA plans to revise 49 CFR Part 379 to reduce overlapping or redundant paperwork.
• Electronic DVIRs: A final rule in 2025 will formally allow Driver Vehicle Inspection Reports to be filed electronically.
• CDL Violation Self-Reporting: Another 2025 final rule will remove the requirement for CDL holders to self-report violations, since states already share that data electronically.
• Accident Reporting – Medical Treatment Definition: FMCSA will clarify in 2025 that diagnostic procedures like X-rays don’t count as “medical treatment.”
• Technical Cleanups: Smaller changes expected in 2025 include license plate lamp exceptions, clarifying tire load markings, and deleting obsolete “water carrier” references. Liquid-Burning Flares Removal: A final rule this year will eliminate outdated references to flares from safety regs.

Together, these measures should cut down on routine compliance tasks, saving drivers and carriers time and hassle.

Upcoming Safety Mandates and Compliance Costs

At the same time, FMCSA is advancing rules that could add costs for carriers:

• Automatic Emergency Braking (AEB): A rulemaking effort is underway to mandate AEB systems on trucks.
• Side Underride Guards: Proposals are advancing that would require underride protection on trailers, potentially raising retrofit and equipment costs.
• Automated Driving Systems (ADS): FMCSA is preparing rules to govern the safe integration of ADS-equipped commercial vehicles, which will require carriers to adapt as technology evolves.

These safety mandates are intended to reduce crashes and improve long-term roadway safety, but they also mean higher upfront investment in equipment and technology.

Why Conflicting State and Federal Rules Still Matter

Pausing federal enforcement doesn’t make the classification issue go away. States like California and Massachusetts continue to apply stricter tests (for example, California’s ABC test), which often make it harder to qualify as an independent contractor.

If you operate across multiple states, you may have to comply with the strictest standards, even if federal oversight is more flexible.

At the same time, the 2024 independent contractor rule is still on the books. While the Department of Labor has stopped using it in investigations, private lawsuits can still cite it, and courts are continuing to hear challenges.

That means classification remains a gray area. Depending on where you operate, one state may treat you as an independent contractor while another could classify you as an employee.

Lenders and auditors are also more likely to scrutinize your records, looking for proof that you control your own routes, schedules, and equipment.

Conclusion

The next two years will bring a mix of relief from outdated requirements and pressure from new safety and labor initiatives. Timelines in the Unified Agenda often slip, so carriers should treat 2026 dates as targets rather than guarantees.

Even with shifting deadlines, one thing is clear: trucking will stay at the center of federal regulatory attention.

If shifting regulations are making it harder to secure traditional funding, Mission Financial Services can help. We offer flexible loan options for first-time buyers, drivers with bad credit, and established owner-operators.

Our goal is simple – to keep your business moving, no matter how the rules change. Start your credit application today.

The trucking industry is facing another shift in 2025. The U.S. Department of Labor (DOL) has stopped enforcing its 2024 independent contractor rule and is moving through rulemaking to replace it.

For truckers and small fleet owners, this change could reshape how:

• Drivers are classified
• Contracts are structured
• Lenders evaluate risk

If you are an owner-operator, a first-time buyer, or running a small fleet, these new rules affect more than just legal status. They touch your financing, compliance responsibilities, and long-term business growth.

Here is a breakdown of what the rule changes mean for your contracts and financing. We’ll also highlight reactions from across the industry and show how you can prepare for the road ahead.

What Changed in the Independent Contractor Rules

The 2024 rule introduced a six-factor “economic realities” test to decide whether a worker is an employee or an independent contractor. Each factor carried equal weight, including investment, profit or loss opportunities, control, permanence, and whether the work was integral to the business.

The Trump administration’s new proposal aims to rescind that rule and move back toward standards that emphasize fewer “core factors.” In the 2021 version, the two most important measures were how much control the employer has over the work and whether the worker has a real opportunity for profit or loss.

This shift could give independent contractors more clarity and flexibility. However, because some states like California still use the stricter ABC test, not every driver will see relief.

Federal and state laws may continue to conflict, creating uncertainty for drivers who operate across multiple regions.

Industry Response to the Rule Changes

Here is how trucking associations and the courts are reacting to the proposed changes in independent contractor rules, and what that means for certainty in contracts and financing.

Support From Major Associations

The American Trucking Associations (ATA) praised the decision to rescind the 2024 independent contractor rule.

ATA President and CEO Chris Spear said the rule would have “wiped out choice, crushed opportunity, and sidelined hundreds of thousands of truckers” who choose to run their own businesses. The organization also noted that more than 350,000 professional truck drivers currently operate as independent contractors.

The Owner-Operator Independent Drivers Association (OOIDA) likewise supports preserving independent contractor status, emphasizing driver flexibility and choice. However, OOIDA has warned that proposed speed limiter mandates could still pose risks for independent drivers if enforced.

Concerns About Legal Uncertainty

Not everyone views the changes as clean or risk-free. Many carriers and drivers are concerned about regulatory whiplash, where rules shift back and forth with each administration, making it difficult to keep contracts, financing, and compliance strategies stable.

In a recent case, Colt & Joe Trucking in New Mexico challenged the 2024 rule, but a federal district court upheld the regulation. Judge Kea Riggs found it valid under the Administrative Procedure Act and rejected claims that it was arbitrary or capricious, while also ruling the carrier lacked standing to pursue other challenges.

Legal and Practical Implications for Truckers

Being classified as an employee instead of an independent contractor carries major consequences. Businesses may have to pay payroll taxes, benefits, and overtime. Contractors may lose flexibility to set schedules, choose loads, or negotiate rates.

These differences affect how you work day-to-day, how you file taxes, and even how lenders view your business.

For you, that means:

• Taxes and deductions change. Independent contractors can deduct trucking-related tax expenses, including fuel, maintenance, and insurance. Employees cannot claim those deductions in the same way.
• Contracts need clarity. Make sure your agreements clearly show who controls schedules, equipment ownership, and operational decisions.
• Documentation matters. Keep records that demonstrate you control your routes, equipment, and business choices. This protects your IC status and helps lenders understand your position.

How the Rules Affect Financing for Owner-Operators and Small Fleets

Your classification as an independent contractor can shape how lenders view your stability, what terms they offer, and whether you qualify for financing at all.

• Loan approvals and terms: Lenders judge your stability and risk profile. If reclassification raises the chance of unexpected taxes or liabilities, they may require larger down payments (20–30% instead of 10–15%) or demand additional collateral.
• Operating cash flow: Losing tax deductions or paying higher taxes cuts into disposable income. Running a realistic cost-per-mile calculation helps you plan for consistent loan payments.
• Used truck values: If fewer drivers stay independent, demand in some markets could shrink, reducing resale values for certain types of equipment.

Some lenders see independent contractors as higher risk, which can make approvals harder or terms less favorable.

If traditional banks hesitate, it doesn’t mean financing is out of reach. Mission Financial Services works with truckers every day and provides loan options designed around the realities of owner-operators and small fleets.

Scenarios to Watch

No one knows exactly how the courts and states will handle these rules, but you can plan ahead by considering the best, middle, and worst-case scenarios.

Best-Case Scenario

If the rescission goes through and holds up in court, independent contractors keep their status at the federal level.

For you, that means lenders have fewer questions about risk, approvals move faster, and you maintain flexibility to run your business your way. Financing terms stay predictable, which helps with planning long-term purchases like trucks and trailers.

Middle-Ground Scenario

The federal rule is rolled back, but states like California and Massachusetts keep stricter tests. That creates a patchwork of rules.

You may qualify as an independent contractor in most states but be treated as an employee in others, complicating how you book loads and structure contracts. Lenders may respond by requiring more documentation to show where and how you operate before approving loans.

Worst-Case Scenario

Court challenges drag on, leaving conflicting rules in place across the country. For truckers, that uncertainty means higher compliance costs, more paperwork, and tougher financing conditions.

Fleets and owner-operators may face larger down payment requirements, tighter loan terms, or reduced resale values on used trucks as lenders hedge their risk.

Conclusion

The future of independent contractor rules will directly affect how you run your business and how lenders view your financing applications.

Whether the rules stabilize, remain inconsistent across states, or drag out in court, the key is staying prepared for tighter lending standards, documentation requirements, or shifting resale values.

That’s where we can help. Mission Financial Services understands how rule changes ripple through the trucking and financing industries, and we’ve built loan programs designed for owner-operators and small fleets navigating uncertainty.

Looking ahead, the rules may change, but your ability to access financing shouldn’t. Talk to Mission Financial Services about flexible loan solutions that fit the realities of trucking or start your credit application today.

Tariffs on truck parts, rising inflation, and new federal emissions rules are reshaping the commercial vehicle market in 2025.

For drivers and small fleet owners, the ripple effects are clear. Financing decisions are becoming more complicated, and the cost of owning and operating a truck may climb higher in the months ahead.

Let’s examine the impact of tariffs, inflation, and regulations on commercial vehicle financing. We’ll also bring in insights from executives and analysts who spoke at the MEMA Commercial Vehicle Outlook Conference, where these issues dominated the discussion.

What’s Happening With the Economy

Tariff-driven cost pressures are squeezing margins for both new trucks and replacement parts, even as freight volumes remain soft. High interest rates make loan payments more expensive, while shrinking real disposable income is leaving fleets with less cash flow to manage debt.

Freight demand has not recovered since mid-2022, when rates began falling from pandemic highs. Carriers are experiencing what analysts call a “freight recession” – a period of prolonged stagnation where revenue per truck falls, making it harder to keep up with payments.

At MEMA, ACT Research’s Kenny Vieth warned that inflation is reaccelerating, disposable income is slipping, and tariffs may have already “vaporized” nearly 1% of GDP. He pegged recession risk at 35%. Matt Wolfe of SAF Holland was blunter, saying carriers “aren’t making money” and predicting a tough 2025–26.

How Tariffs Are Driving Up Truck Costs

U.S. trade policy in 2025 has introduced new tariffs on imported materials and key components, raising costs across the supply chain. Parts made with steel and aluminum are especially affected. When these raw materials increase in price, so do brakes, frames, and electronic components.

Tariffs also impact the cost of new trucks. As input prices rise, manufacturers pass some of those costs to buyers. This leads to larger loan amounts and greater financial strain for drivers with limited credit.

Many U.S.-built trucks still rely on imported components. With tariffs raising costs and supply chains stretched thin, fleets are facing longer lead times and higher prices when critical parts fail. Older trucks staying in service longer also add to demand, which increases the chances of delays and unexpected repair costs.

MEMA speakers warned that tariffs are eroding U.S. competitiveness and creating instability.

Bain’s Jeffrey Crane cautioned they could realign global trade patterns, noting that if the U.S. trade deficit shrinks materially, net exporters worldwide will scramble to find new markets. This would create ripple effects far beyond American borders.

Meanwhile, Bendix’s Nicole Oreskovic said USMCA uncertainty is paralyzing investment decisions: “We’ve got plans in place. We’re not taking any drastic measures, though, until we see how this unfolds in the next six months and stabilizes, because there’s a significant cost to those types of moves, right? We want to make sure that we’re doing it strategically, not just reacting to the latest tariff headline.”

New Emissions Rules and Clean Truck Regulations

The Environmental Protection Agency (EPA) has finalized Phase 3 greenhouse gas standards for heavy-duty vehicles, which will apply to tractors and vocational trucks starting with model year 2027. These rules tighten CO₂ emissions limits and add new monitoring and compliance requirements, potentially raising equipment costs.

Phase 3 builds on earlier standards under the Clean Trucks Plan. For buyers, this means factoring emissions technology and compliance costs directly into operating expenses.

However, regulatory volatility remains. State-level programs, like California’s clean truck rules, could apply stricter standards or require different waivers, creating risk around when to place orders.

More immediately, the EPA’s low-NOx rules (expected to be announced by late 2025) could trigger pre-buying activity as fleets rush to place orders before 2026 model year deadlines. Vieth predicted this pre-buying wave could create a temporary spike in orders during Q4 2025.

On the vocational side, demand has already cooled after the EPA announced in March that it was reconsidering its Clean Truck program, eliminating stimulus programs that had driven purchases.

For first-time buyers and small fleets, this regulatory uncertainty makes financing and growing trucking businesses more challenging. Investing in cleaner technology may pay off long term, but waiting could bring short-term savings.

Yet, some executives remain optimistic about emissions technology itself. Hendrickson’s Jeff Zawacki emphasized that the technology is already market-ready and believes suppliers will bring it to market regardless of mandates, driven by customer demand.

Oreskovic noted that while EV investments have slowed, electrification remains inevitable. The challenge, as SAF Holland’s Wolfe put it, is that shifting regulatory timelines make business planning difficult.

How This Affects Financing for Trucks and Fleets

When the costs of new trucks, parts, and compliance are rising, financing becomes more expensive and riskier.

• Larger loan amounts: If a new truck’s base price increases because of tariffs or regulations, the amount you need to borrow increases.
• Credit risk increases: For drivers with limited or bad credit, higher loan amounts plus tighter margins in operations mean a higher risk of default. Lenders may require higher down payments or stricter collateral.
• Depreciation and resale value concerns: Trucks without updated emissions or parts that meet new rules may experience a faster decline in value. Used truck values are soft for many classes, especially in vocational trucks, which makes loan term planning riskier.
• Loan repayment pressure due to softer freight demand: With freight volumes muted and rates under pressure, cash flow for many carriers and owner-operators is stretched. That means payments for new loans or repair financing may compete with other expenses, such as fuel, insurance, and maintenance.
• Lengthened repair/maintenance cycles: Because new equipment is expensive and parts are delayed or costly, many operators will defer replacements or major repairs. But deferring too long risks higher downtime or breakdowns. Repair financing thus becomes more critical.

What the Next Year Might Look Like

The outlook for truck financing depends heavily on tariffs, regulations, interest rates, and freight demand. Here are two possible scenarios:

As Wolfe put it, carriers won’t invest until freight rates improve, making 2025–26 especially difficult. Vieth was more balanced, noting that while risks are mounting, strong business balance sheets could still help the U.S. avoid a full recession.

What Fleet Owners and Lenders Should Do Now

You can’t control tariffs or regulations, but you can prepare your business and financing strategy. Here are practical steps:

• Get your finances in order: Track all major costs (purchase price, parts, repairs, maintenance, and compliance) and regularly calculate your cost per mile to stay on top of profitability. Run scenarios to see the impact if interest rates remain high or if parts prices rise 10-25%.
• Select financing that aligns with your credit profile: If you have limited or bad credit, consider lenders like Mission Financial Services that work with drivers often turned away elsewhere. Flexible structures, such as shorter repayment periods, negotiated down payments, or title loans, may also be suitable for your situation.
• Plan truck purchases wisely: Buying emission-compliant trucks can protect resale value and lower compliance risks if you plan to keep them long term. If regulation timelines remain unclear, weigh the risks of waiting against current prices and financing availability.
• Maintain and repair strategically. Downtime costs money. Fast funding through repair loans can reduce lost income when breakdowns occur. Keep records of emissions certifications, warranties, and parts availability to protect long-term asset value.
• Stay alert to policy changes: Monitor EPA announcements, tariff adjustments, and court rulings, particularly those involving Canada, Mexico, and key inputs such as steel and aluminum. Stay engaged with industry associations and keep an eye on potential tax deductions that can ease the burden of rising costs.

Conclusion

The mix of tariffs, inflation, and regulations is reshaping the cost of owning and financing trucks. For drivers, first-time buyers, and small fleet owners, the path forward requires flexibility and careful planning. You also need access to lenders who understand the challenges of this industry.

As speakers at the MEMA Commercial Vehicle Outlook Conference stressed, the best way to navigate an unpredictable 2025 is by planning ahead and staying financially prepared.

Mission Financial Services is here to help with fast approvals and flexible loan options.

Whether you need financing for your first truck, a small fleet expansion, or unexpected repairs, we can provide the funding to keep you on the move. Start your credit application today.