Congress Can Build on the Graves Amendment by Including Peer-to-Peer Car Sharing

As Congress works toward passing a final surface transportation reauthorization bill, they should use the legislation as an opportunity to expand the Graves Amendment to apply to peer-to-peer (P2P) car sharing.

Congress last passed a surface transportation reauthorization package in 2021, with provisions which are set to expire in September 2026. The House and Senate are currently working to draft a new reauthorization bill for passage before the September deadline.

In the 2005 surface transportation reauthorization, Congress included a provision, today known as the “Graves Amendment,” which established federal preemption against state-level laws that imposed vicarious liability on rental car companies for accidents that were caused by drivers without any negligence by the company. While rental companies can still be held liable for actual negligence, this amendment has prevented predatory lawsuits which clog up the court system and which increase costs that are ultimately passed along to consumers.

Congress can build on the success of the Graves Amendment by expanding its scope to also include P2P car sharing, where individuals rent their personal vehicles to others through an online platform.

The P2P model currently exists in a legal gray area in terms of Graves Amendment-style protections, and Congress clarifying that the provision also applies to owners of vehicles in the P2P system can help prevent unnecessary litigation.

Around 30 states have already eliminated these excessive lawsuits for P2P car sharing, but the upcoming surface transportation reauthorization bill provides an opportunity to eliminate the problem nationwide. By pre-empting the state patchwork at a federal level, Congress can help level the playing field and lower costs for consumers in the P2P car sharing market.

Last month, Americans for Tax Reform sent a letter to members of Congress with several key surface transportation priorities, including this important tort reform provision for P2P car sharing.

As the base text of the surface transportation reauthorization bill is finalized, it should include a modernization of the Graves Amendment to encompass new markets like P2P car sharing.