The Pipeline and Hazardous Materials Safety Administration (PHMSA) will not apply its customary inflation-based increase to civil monetary penalties in 2026.
Federal agencies ordinarily adjust civil penalties each year using the Consumer Price Index for All Urban Consumers. The governing statute specifically requires agencies to use CPI-U data from October of the preceding year.
Because the federal government shutdown prevented the Bureau of Labor Statistics from producing the October 2025 CPI-U figure, the Office of Management and Budget determined that agencies could not calculate the 2026 adjustment. The statute does not provide an alternative calculation method. The 2025 PHMSA penalty limits remain in effect for 2026. Under DOT’s official 2025 final rule, the maximum civil penalty is $102,348 for most hazardous-materials violations and $238,809 when a violation results in death, serious illness, severe injury, or substantial property destruction. A violation involving hazardous-materials training carries a minimum penalty of $617, while the maximum remains $102,348.
Why this matters
The absence of a cost-of-living increase does not reduce PHMSA’s enforcement authority, forgive violations, or lower the existing penalty amounts. It simply means that the amounts established for 2025 remain in effect for 2026.
Existing penalties remain substantial, particularly when separate violations continue for multiple days or involve multiple shipments, packages, employees, or regulatory requirements.
Companies should not interpret the pause as reduced enforcement pressure. The practical priority remains preventing violations through accurate classification, authorized packaging, complete documentation, effective training, and reliable operational controls.
Agencies: Office of Management and Budget and U.S. Department of Transportation
Announcement date: April 17, 2026
Status: No inflation-based civil-penalty adjustment for 2026
Topic: PHMSA enforcement, hazardous-materials civil penalties, and annual inflation adjustments