Federal Register / Vol. 90, No. 8 / Tuesday, January 14, 2025 / Rules and Regulations 3039 

• The civil monetary penalties related 

to Restrictions on Lobbying (45 CFR 

1230.400) range from $24,497 to 

$244,957. Using the 2025 multiplier, the 

new range of possible civil monetary 

penalties is from $25,133 to $251,321. 

• The Program Fraud Civil Remedies 

Act of 1986 (45 CFR 2554.1) civil 

monetary penalty has an upper limit of 

$13,946. Using the 2025 multiplier, the 

new upper limit of the civil monetary 

penalty is $14,308. 

III. Summary of Final Rule 

This final rule adjusts the civil 

monetary penalty amounts related to 

Restrictions on Lobbying (45 CFR 

1230.400) and the Program Fraud Civil 

Remedies Act of 1986 (45 CFR 2554.1). 

The range of civil monetary penalties 

related to Restrictions on Lobbying 

increase from ‘‘$24,497 to $244,957’’ to 

‘‘$25,133 to $251,321’’. The civil 

monetary penalties for the Program 

Fraud Civil Remedies Act of 1986 

increase from ‘‘up to $13,946’’ to ‘‘up to 

$14,308’’. 

IV. Regulatory Procedures 

A. Determination of Good Cause for 

Publication Without Notice and 

Comment and With an Immediate 

Effective Date 

Section 553(b) of the Administrative 

Procedure Act (APA) (5 U.S.C. 553) 

provides that, when an agency for good 

cause finds that notice and public 

comment procedures are impracticable, 

unnecessary, or contrary to the public 

interest, then the agency may issue a 

rule without providing notice and an 

opportunity for prior public comment. 

The agency finds that there is good 

cause to except this rule from the public 

notice and comment provisions of the 

APA in this case. Because the Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 requires the 

agency to update its regulations based 

on a prescribed formula, the agency has 

no discretion in the nature or amount of 

the change to the civil monetary 

penalties to reflect any views or 

suggestions provided by commenters. 

Accordingly, it would serve no purpose 

to provide an opportunity for public 

comment on this rule prior to 

promulgation. Thus, providing for 

notice and public comment is 

impracticable and unnecessary. 

Additionally, it would not be possible to 

meet the deadlines imposed by the Act 

if we were to first publish a proposed 

rule, allow the public sufficient time to 

submit comments, analyze the 

comments, and publish a final rule. 

Therefore, notice and comment for these 

proscribed updates is impracticable and 

unnecessary. 

Furthermore, the agency finds under 

section 553(d)(3) of the APA that good 

cause exists to make this final rule 

effective immediately upon publication 

in the Federal Register. In the Act, 

Congress expressly required Federal 

agencies to publish annual inflation 

adjustments to civil penalties in the 

Federal Register by January 15 of each 

year, notwithstanding section 553 of the 

APA. Under the statutory framework 

and OMB guidance, the new penalty 

levels take effect immediately upon the 

effective date of the adjustment. The 

statutory deadline does not allow time 

to delay this rule’s effective date beyond 

publication. Moreover, a delayed 

effective date would delay application 

of the new penalty levels, contrary to 

Congress’s intent. 

Accordingly, we are issuing the 

annual adjustments as a final rule 

without prior notice or an opportunity 

for comment and with an effective date 

immediately upon publication in the 

Federal Register. 

B. Review Under Procedural Statutes 

and Executive Orders 

The agency has determined that 

making technical changes to the amount 

of civil monetary penalties in its 

regulations does not trigger any 

requirements under procedural statutes 

and Executive orders that govern 

rulemaking procedures. 

List of Subjects 

45 CFR Part 1230 

Government contracts, Grant 

programs, Loan programs, Lobbying, 

Penalties, Reporting and recordkeeping 

requirements. 

45 CFR Part 2554 

Claims, Fraud, Organization and 

functions (Government agencies), 

Penalties. 

For the reasons discussed in the 

preamble, under the authority of 42 

U.S.C. 12651c(c), the Corporation for 

National and Community Service 

amends chapters XII and XXV, title 45 

of the Code of Federal Regulations as 

follows: 

PART 1230—NEW RESTRICTIONS ON 

LOBBYING 

■ 1. The authority citation for part 1230 

continues to read as follows: 

Authority: Section 319, Pub. L. 101–121 

(31 U.S.C. 1352); Pub. L. 93–113; 42 U.S.C. 

4951, et seq.; 42 U.S.C. 5060. 

§ 1230.400 [Amended] 

■ 2. Amend § 1230.400 by removing 

‘‘$24,497’’ and ‘‘$244,957’’ wherever 

they appear and adding in their places 

‘‘$25,133’’ and ‘‘$251,321’’, respectively. 

Appendix A to Part 1230 [Amended] 

■ 3. Amend appendix A to part 1230 by 

removing ‘‘$24,497’’ and ‘‘$244,957’’ 

wherever they appear and adding in 

their places ‘‘$25,133’’ and ‘‘$251,321’’, 

respectively. 

PART 2554—PROGRAM FRAUD CIVIL 

REMEDIES ACT REGULATIONS 

■ 4. The authority citation for part 2554 

continues to read as follows: 

Authority: Pub. L. 99–509, Secs. 6101– 

6104, 100 Stat. 1874 (31 U.S.C. 3801–3812); 

42 U.S.C. 12651c–12651d. 

§ 2554.1 [Amended] 

■ 5. Amend § 2554.1 in paragraph (b) by 

removing ‘‘$13,946’’ and adding in its 

place ‘‘$14,308’’. 

Andrea Grill, 

Acting General Counsel. 

[FR Doc. 2025–00635 Filed 1–13–25; 8:45 am] 

BILLING CODE 6050–28–P 

FEDERAL MARITIME COMMISSION 

46 CFR Part 506 

[Docket No. FMC–2024–0024] 

RIN 3072–AD03 

Inflation Adjustment of Civil Monetary 

Penalties 

AGENCY: Federal Maritime Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Maritime 

Commission (Commission) is publishing 

this final rule to adjust for inflation the 

civil monetary penalties assessed or 

enforced by the Commission, pursuant 

to the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (2015 Act). The 2015 Act requires 

that agencies adjust and publish their 

new civil penalties by January 15 each 

year. 

DATES: This rule is effective January 15, 

2025. 

FOR FURTHER INFORMATION CONTACT: 

David Eng, Secretary; Phone: (202) 523– 

5725; Email: Secretary@fmc.gov. 

SUPPLEMENTARY INFORMATION: This rule 

adjusts the civil monetary penalties 

assessable by the Commission in 

accordance with the 2015 Act, which 

became effective on November 2, 2015. 

Public Law 114–74, section 701. The 

2015 Act further amended the Federal 


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3040 Federal Register / Vol. 90, No. 8 / Tuesday, January 14, 2025 / Rules and Regulations 

1Office of Management and Budget, M–25–02, 

Implementation of Penalty Inflation Adjustments 

for 2025, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 

2015, at 2 (Dec. 17, 2024) (M–25–02). 

2Federal Civil Penalties Inflation Adjustment Act 

of 1990, Public Law 101–410, section 4(b)(2), 104 

Stat. 890 (codified at 28 U.S.C. 2461 note). 

Civil Penalties Inflation Adjustment Act 

of 1990 (FCPIAA), Public Law 101–410, 

104 Stat. 890 (codified as amended at 28 

U.S.C. 2461 note), in order to improve 

the effectiveness of civil monetary 

penalties and to maintain their deterrent 

effect. 

The 2015 Act requires agencies to 

adjust civil monetary penalties under 

their jurisdiction by January 15 each 

year, based on changes in the consumer 

price index (CPI–U) for the month of 

October in the previous calendar year. 

On December 17, 2024, the Office of 

Management and Budget published 

guidance stating that based on the CPI– 

U for October 2024, not seasonally 

adjusted, the cost-of-living adjustment 

multiplier for 2025 is 1.02598.1 In order 

to complete the annual adjustment, the 

Commission must multiply the most 

recent civil penalty amounts in 46 CFR 

part 506 by the multiplier, 1.02598. 

Rulemaking Analyses and Notices 

Notice and Effective Date 

Adjustments under the FCPIAA, as 

amended by the 2015 Act, are not 

subject to the procedural rulemaking 

requirements of the Administrative 

Procedure Act (APA) (5 U.S.C. 553), 

including the requirements for prior 

notice, an opportunity for comment, and 

a delay between the issuance of a final 

rule and its effective date.2 The 2015 

Act requires that the Commission adjust 

its civil monetary penalties no later than 

January 15 of each year. 

Congressional Review Act 

The rule is not a ‘‘major rule’’ as 

defined by the Congressional Review 

Act, codified at 5 U.S.C. 801 et seq. The 

rule will not result in: (1) an annual 

effect on the economy of $100,000,000 

or more; (2) a major increase in costs or 

prices; or (3) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

the ability of United States-based 

companies to compete with foreignbased companies. 5 U.S.C. 804(2). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(codified as amended at 5 U.S.C. 601– 

612) provides that whenever an agency 

promulgates a final rule after being 

required to publish a notice of proposed 

rulemaking under the APA (5 U.S.C. 

553), the agency must prepare and make 

available a final regulatory flexibility 

analysis describing the impact of the 

rule on small entities or the head of the 

agency must certify that the rule will 

not have a significant economic impact 

on a substantial number of small 

entities. 5 U.S.C. 604–605. As indicated 

above, this final rule is not subject to the 

APA’s notice and comment 

requirements, and the Commission is 

not required to either conduct a 

regulatory flexibility analysis or certify 

that the final rule would not have a 

significant economic impact on a 

substantial number of small entities. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) requires an 

agency to seek and receive approval 

from the Office of Management and 

Budget (OMB) before collecting 

information from the public. 44 U.S.C. 

3507. The agency must submit 

collections of information in rules to 

OMB in conjunction with the 

publication of the notice of proposed 

rulemaking. 5 CFR 1320.11. This final 

rule does not contain any collection of 

information, as defined by 44 U.S.C. 

3502(3) and 5 CFR 1320.3(c). 

List of Subjects in 46 CFR Part 506 

Administrative practice and 

procedure, Claims, Penalties. 

For the reasons stated in the 

preamble, 46 CFR part 506 is amended 

as follows: 

PART 506—CIVIL MONETARY 

PENALTY INFLATION ADJUSTMENT 

■ 1. The authority citation for part 506 

continues to read as follows: 

Authority: 28 U.S.C. 2461. 

■ 2. Amend § 506.4 by revising 

paragraph (d) to read as follows: 

§ 506.4 Cost of living adjustments of civil 

monetary penalties. 

* * * * * 

(d) Inflation adjustment. Maximum 

civil monetary penalties within the 

jurisdiction of the Federal Maritime 

Commission are adjusted for inflation as 

follows: 

TABLE 1 TO PARAGRAPH (d) 

United States Code citation Civil monetary penalty description 

Maximum 

penalty as of 

January 15, 

2024 

Maximum 

penalty as of 

January 15, 2025 

46 U.S.C. 42304 ........................ Adverse impact on U.S. carriers by foreign shipping practices .............. $2,559,636 $2,626,135 

46 U.S.C. 41107(a) ................... Knowing and Willful violation/Shipping Act of 1984, or Commission 

regulation or order.

73,045 74,943 

46 U.S.C. 41107(a) ................... Violation of Shipping Act of 1984, Commission regulation or order, not 

knowing and willful.

14,608 14,988 

46 U.S.C. 41108(b) ................... Operating in foreign commerce after tariff suspension ........................... 146,092 149,887 

46 U.S.C. 42104 ........................ Failure to provide required reports, etc./Merchant Marine Act of 1920 .. 11,524 11,823 

46 U.S.C. 42106 ........................ Adverse shipping conditions/Merchant Marine Act of 1920 .................... 2,304,629 2,364,503 

46 U.S.C. 42108 ........................ Operating after tariff or service contract suspension/Merchant Marine 

Act of 1920.

115,231 118,225 

46 U.S.C. 44102, 44104 ............ Failure to establish financial responsibility for non-performance of 

transportation.

29,108 

971 

29,864 

996 

46 U.S.C. 44103, 44104 ............ Failure to establish financial responsibility for death or injury ................ 29,108 

971 

29,864 

996 

31 U.S.C. 3802(a)(1) ................. Program Fraud Civil Remedies Act/making false claim .......................... 13,946 14,308

31 U.S.C. 3802(a)(2) ................. Program Fraud Civil Remedies Act/giving false statement .................... 13,946 14,308 


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Federal Register / Vol. 90, No. 8 / Tuesday, January 14, 2025 / Rules and Regulations 3041 

1The Board also has various criminal penalty 

authority, enforceable in a federal criminal court. 

Congress has not, however, authorized federal 

agencies to adjust statutorily prescribed criminal 

penalty provisions for inflation, and this rule does 

not address those provisions. 

By the Commission. 

David Eng, 

Secretary. 

[FR Doc. 2025–00630 Filed 1–13–25; 8:45 am] 

BILLING CODE 6730–02–P 

SURFACE TRANSPORTATION BOARD 

49 CFR Part 1022 

[Docket No. EP 716 (Sub-No. 10)] 

Civil Monetary Penalties—2025 

Adjustment 

AGENCY: Surface Transportation Board. 

ACTION: Final rule. 

SUMMARY: The Surface Transportation 

Board (Board) is issuing a final rule to 

implement the annual inflationary 

adjustment to its civil monetary 

penalties, pursuant to the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

DATES: This final rule is effective 

January 14, 2025. 

FOR FURTHER INFORMATION CONTACT: 

Sarah Fancher at (202) 245–0355. If you 

require an accommodation under the 

Americans with Disabilities Act, please 

call (202) 245–0245. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (2015 Act), enacted as part of the 

Bipartisan Budget Act of 2015, Public 

Law 114–74, sec. 701, 129 Stat. 584, 

599–601, requires agencies to adjust 

their civil penalties for inflation 

annually, beginning on July 1, 2016, and 

no later than January 15 of every year 

thereafter. In accordance with the 2015 

Act, annual inflation adjustments are to 

be based on the percent change between 

the Consumer Price Index for all Urban 

Consumers (CPI–U) for October of the 

previous year and the October CPI–U of 

the year before that. Penalty level 

adjustments should be rounded to the 

nearest dollar. 

II. Discussion 

The statutory definition of civil 

monetary penalty covers various civil 

penalty provisions under the Rail (Part 

A); Motor Carriers, Water Carriers, 

Brokers, and Freight Forwarders (Part 

B); and Pipeline Carriers (Part C) 

provisions of the Interstate Commerce 

Act, as amended. The Board’s civil (and 

criminal) penalty authority related to 

rail transportation is codified at 49 

U.S.C. 11901–11908. The Board’s 

penalty authority related to motor 

carriers, water carriers, brokers, and 

freight forwarders appears at 49 U.S.C. 

14901–14916. The Board’s penalty 

authority related to pipeline carriers is 

codified at 49 U.S.C. 16101–16106.1 The 

Board has regulations at 49 CFR part 

1022 that codify the method set forth in 

the 2015 Act for annually adjusting for 

inflation the civil monetary penalties 

within the Board’s jurisdiction. 

As set forth in this final rule, the 

Board is amending 49 CFR part 1022 to 

make an annual inflation adjustment to 

the civil monetary penalties in 

conformance with the requirements of 

the 2015 Act. The adjusted penalties set 

forth in the rule will apply only to 

violations that occur after the effective 

date of this regulation. 

In accordance with the 2015 Act, the 

annual adjustment adopted here is 

calculated by multiplying each current 

penalty by the cost-of-living adjustment 

factor of 1.02598, which reflects the 

percentage change between the October 

2024 CPI–U (315.664) and the October 

2023 CPI–U (307.671). The table at the 

end of this decision shows the statutory 

citation for each civil penalty, a 

description of the provision, the 

adjusted statutory civil penalty level for 

2024, and the adjusted statutory civil 

penalty level for 2025. 

III. Final Rule 

The final rule set forth at the end of 

this decision is being issued without 

notice and comment pursuant to the 

rulemaking provision of the 

Administrative Procedure Act (APA), 5 

U.S.C. 553(b)(B), which does not require 

that process ‘‘when the agency for good 

cause finds’’ that public notice and 

comment are ‘‘unnecessary.’’ Here, 

Congress has mandated that the agency 

make an annual inflation adjustment to 

its civil monetary penalties. The Board 

has no discretion to set alternative 

levels of adjusted civil monetary 

penalties, because the amount of the 

inflation adjustment must be calculated 

in accordance with the statutory 

formula. Given the absence of 

discretion, the Board has determined 

that there is good cause to promulgate 

this rule without soliciting public 

comment and to make this regulation 

effective immediately upon publication. 

IV. Regulatory Flexibility Statement 

The Regulatory Flexibility Act (RFA), 

as amended by the Small Business 

Regulatory Enforcement Fairness Act of 

1996, 5 U.S.C. 601–612, generally 

requires an agency to prepare a 

regulatory flexibility analysis of any rule 

subject to notice and comment 

rulemaking requirements, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Because the Board has determined that 

notice and comment are not required 

under the APA for this rulemaking, the 

requirements of the RFA do not apply. 

V. Congressional Review Act 

Pursuant to the Congressional Review 

Act, 5 U.S.C. 801–808, the Office of 

Information and Regulatory Affairs has 

designated this rule as a non-major rule, 

as defined by 5 U.S.C. 804(2). 

VI. Paperwork Reduction Act 

This final rule does not contain a new 

or amended information collection 

requirement subject to the Paperwork 

Reduction Act of 1995, 44 U.S.C. 3501– 

3521. 

It is ordered: 

1. The Board amends its rules as set 

forth in this decision. Notice of the final 

rule will be published in the Federal 

Register. 

2. This decision is effective on its date 

of publication in the Federal Register. 

Decided: January 7, 2025. 

By the Board, Board Members Fuchs, 

Hedlund, Primus, and Schultz. Board 

Member Primus concurred with a 

separate expression. 

BOARD MEMBER PRIMUS, concurring: 

For the past couple years when the 

Board adjusted its civil monetary 

penalties, I wrote separately to express 

concern about the adequacy of the 

penalties afforded by statute. Civ. 

Monetary Penalties—2024 Adjustment, 

EP 716 (Sub-No. 9) (STB served Jan. 12, 

2024), slip op. at 3 (Member Primus 

concurring); Civ. Monetary Penalties— 

2023 Adjustment, EP 716 (Sub-No. 8) 

(STB served Jan. 13, 2023), slip op. at 

3–4 (Member Primus concurring). My 

concern remains today. The Board’s 

decision, consistent with the Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, makes minor 

adjustments to its civil penalties—for 

example, increasing the penalty in 49 

U.S.C. 11901(a) from $9,718 to $9,970. 

For the reasons I have stated previously, 

those penalties are unlikely to provide 

the deterrent effect intended by 

Congress, and Congress should address 

this inadequacy. 

List of Subjects in 49 CFR Part 1022 

Administrative practice and 

procedures, Brokers, Civil penalties, 

Freight forwarders, Motor carriers, 


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