Congress Should Modernize the Graves Amendment, Include Peer-to-Peer Car Sharing

As Congress works on the “BUILD America 250 Act” this week, lawmakers should support an amendment to modernize the Graves Amendment of 2005 by including the peer-to-peer (P2P) car sharing model.

On Tuesday, Chairman Sam Graves (R-Mo.) of the House Transportation & Infrastructure Committee announced the introduction of H.R. 8870, the “Build America 250 Act,” a five-year surface transportation reauthorization bill. Congress last passed a surface transportation reauthorization package in 2021, with provisions which are set to expire in September 2026.

A markup of H.R. 8870 is scheduled for this Thursday, May 21st.

Congressman Troy Nehls (R-Texas) is sponsoring an amendment to the Build America 250 Act which would update the Graves Amendment of 2005 by extending its protections to the peer-to-peer car sharing market.

In the 2005 surface transportation reauthorization, Congress included a provision, today known as the “Graves Amendment,” which established federal preemption against state 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 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. 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, and Congressman Nehls’ amendment 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 fall, 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.

Members of Congress should support the Nehls amendment to extend Graves-style protections to peer-to-peer car sharing.