So much can happen in one year that impacts the trucking industry. Fluctuating fuel prices, even small shifts, can strain a tight budget. Driver shortages and fierce competition to attract the best talent add to the struggles, but that’s not all you face.
When a state or federal branch of government adds new regulations or changes existing regulations, it’s often hard to manage. You need to be prepared for new laws and regulatory changes before they hit. If you’ve never considered freight factoring as a way to offset any negative impact changing rules have on your trucking company, it’s time to change your business’s financial future.
Understanding the Regulatory Landscape in Your State and Nationally
Trucking regulations change often, and the current administration issued or changed several regulations in May 2025. Some of the biggest changes involve the removal of eight registered ELD devices, the requirement that all truck drivers be fluent in English, and changes to FMCSA grant applications.
In addition, 52 regulations were removed from the FHWA, FMCSA, and NHTSA. This is a lot to keep up with, and that’s just on a federal level.
Looking at some of the financial impact that these regulatory changes may have on your business, start with the eight ELDs that are no longer approved. Trucking company owners have no more than 60 days (July 11, 2025) to purchase and install compliant units if they currently use:
- AllwaysTrack
- Command Aikon Trackit
- ELDX
- Gorilla Safety Compact ELD
- HCSS ELD
- LB Technologies FleetTrack HOS
- Simplex ELD 2GO
- Trucker Path ELD Pro
The FMCSA estimates that the average cost of a device ranges from $93 to $128 per device. The sudden cost of new hardware and the yearly subscription (upwards of $419 per year) could be difficult for some trucking company owners to afford.
If any of your drivers do not meet the ELP standard, they must be placed out of service. President Obama reduced this rule to allow CDL holders to use smartphone translation devices or other tools to help with translations when a driver’s native language isn’t English. His changes have been revoked, and all drivers holding a CDL must be trained to speak English fluently before they can return to the job.
This could decrease your workforce until you can find new drivers or cover the training your current drivers need to be fluent in English. This again could be costly and impact how many jobs you can take from your current brokers and shippers.
As part of this new executive act, the DOT is also reviewing CDLs for any non-domiciled truck driver to look for “unusual patterns” or “suspicious activities,” meaning international trucking companies may need to provide more documentation in order to keep taking jobs in the U.S.
This all leads to questions about how these changes will impact Title VII of the Civil Rights Act of 1964, which states that employers cannot make decisions like hiring and firing based on a person’s national origin. For this reason, some feel it will be safer to pay for English language classes.
States also have rules and regulations that you and your drivers need to understand. Here are a few that passed or are being considered in 2025.
- Alaska: CDL applicants no longer need to have a regular driver’s license for a full year before applying.
- California: The plan to phase out diesel trucks was repealed in 2025. It now awaits whether a 2035 EPA mandate remains, which gives trucking company owners more time to plan and save for new truck purchases.
- New York: The state is considering dropping the CDL requirement for farm workers who are hauling farm equipment or driving farm trucks on the roads. Providing the driver is within 150 miles of the farm, they’d be exempt.
- Pennsylvania: If proposed law passes, truck drivers with oversize or overweight loads would no longer be restricted from driving on the roads during the day. The drivers would be allowed to haul these loads at any time of the day or night.
- Wyoming: If this bill passes, drivers under the age of 21 could still qualify for a CDL if they had past serious traffic violations, such as erratic driving or driving a commercial vehicle without possessing a CDL.
Our Tips to Protect Your Trucking Company
What can you do to protect your trucking company if you get impacted by new or updated regulations? Here are our tips for preparing for potential regulatory changes and knowing about them as far in advance as possible.
- Assess and adjust your current business strategies as needed.
- Build a strong cash flow with the help of a freight factoring arrangement.
- Embrace the latest technology and find suitable compliance software.
- Join trucking industry associations.
- Maintain strong relationships with your current brokers and shippers.
- Make it a routine to read FMCSA and other regulators’ press releases.
- Prioritize driver training and provide strong benefits packages to attract and retain the best drivers.
- Read transportation news each week by setting alerts or searching for keywords like “new trucking industry regulations” and “new federal trucking laws.”
- Subscribe to industry newsletters and publications.
The Important Role of Freight Factoring in the Transportation World
Freight factoring is one of the best ways to prepare for changing regulations. If you haven’t discovered the benefits of a factoring arrangement, it’s time.
1. Accurate Budget Planning
When you have the peace of mind that you control when you’re paid, it makes it much easier to accurately plan and stick to a budget. You’re not waiting weeks or even months to have the money in hand to keep up with important expenses like rent, utilities, and truck maintenance. You pay those bills on time and set aside the money you’re saving on late fees and accruing interest.
2. Immediate Cash Flow
When a regulatory change leads to increased spending that threatens your tight monthly budget, freight factoring offers same-day payments. That makes it easier to build a reserve for emergency expenses. You’re no longer waiting weeks or months for a client to pay you.
This is especially helpful in cases like the requirement that trucking companies replace specific ELDs. You have until mid-July, and if your clients don’t pay you for 60 days, you won’t have the funding in time. You’re stuck using business credit cards with high interest rates or taking money from other areas of your budget and paying late fees on the bills you were going to pay with it.
3. Improved Business Credit Rating
You pay bills on time because you’re getting paid daily. You’re not putting a lot of your purchases on credit cards or taking out a business line of credit. This improves your business credit rating, which helps you land more clients and qualify for lower interest rates if you do need to borrow money for new trucks or other big purchases.
4. Less Financial Stress
It’s stressful to wait 30, 60, or 90 days and hope your client pays you. You don’t know if that broker or shipper will still be solvent three months from now, but you have to hope for the best. A non-recourse factoring arrangement eases your stress by taking the risk.
Work With a Specialist in Freight Factoring
The trucking industry is essential to our nation’s economy, but it’s also an ever-changing sector. Regulatory changes happen frequently and are stressful if they impact your bottom line.
When you stay up-to-date on what changes are coming and how they’ll affect you, you can plan accordingly. With a strong cash flow with the help of Saint John Capital’s freight factoring options, your finances don’t take a major blow and create undue strain on your day-to-day operations.
Reach us online or by phone to discuss a customized freight factoring plan that matches your trucking company’s needs.
