The Department of Transportation has announced an increase in the rail passenger transportation liability cap. This adjustment is mandated by the Fixing America's Surface Transportation (FAST) Act and raises the cap from $294,278,983 to $322,864,228 to account for inflation. The new cap ensures that the total compensation for all claims from a single accident, including punitive damages, reflects current dollar value. This change will be effective 30 days after February 25, 2021.
Simple Explanation
The Department of Transportation has decided that if a train accident happens, the maximum amount of money that can be paid out to help everyone involved is now higher to match how much things cost today, going from $294 million to $322 million. They did this so the money would be enough to help as much as it did in the past, even though things are more expensive now.