As the House Transportation and Infrastructure Committee advanced H.R. 5688, now known as Dalilah’s Law, on March 18, 2026 , the bill’s provisions targeting foreign entities in the freight ecosystem have drawn particular attention from carriers, brokers, and fraud-watchers.

While much of the legislation focuses on Commercial Driver’s License (CDL) reforms—such as mandating English-language testing and proficiency, restricting non-domiciled CDLs, and cracking down on unqualified drivers—Section 7 introduces targeted restrictions on certain foreign brokers and dispatch services. Sponsors, led by Rep. David Rouzer (R-NC), argue these measures address a key enabler of surging freight fraud and cargo theft schemes.

Here’s a breakdown of the proposed rules based on the Amendment in the Nature of a Substitute released March 16, 2026.

1. Ban on Registering Truly Foreign Brokers with FMCSA

The bill amends 49 U.S.C. § 13904 by adding a new subsection (h):

• The Secretary of Transportation may not register any person or entity as a freight broker if their principal place of business is:

  • Not located in a U.S. state or territory (as defined in 49 U.S.C. § 30301), or

  • In Canada or Mexico but the entity is not properly licensed by the appropriate authority in that country.

This effectively bars offshore brokers (those based outside North America) from obtaining FMCSA broker authority. It also requires Canadian and Mexican brokers to hold valid local licensing to register in the U.S. system.

The intent: Prevent unregistered or hard-to-enforce foreign entities from operating in the U.S. freight market, where they could facilitate double-brokering, load hijacking, or identity-theft schemes without easy U.S. jurisdiction.

Legitimate North American brokers (U.S.-based, or properly licensed in Canada/Mexico under USMCA frameworks) would remain unaffected.

2. Prohibition on Motor Carriers Using “Foreign Dispatch Services”

A new section 14917 is added to Chapter 149 of Title 49 U.S.C.:

• Definition of “foreign dispatch service” — Narrow and specific:

  • Principal place of business outside the United States, Mexico, or Canada.

  • Acts as a direct licensed agent for one or more motor carriers via a formal written agreement.

  • Receives compensation from the motor carrier based on a predetermined written legal contract.

  • Provides only administrative or support services limited to:

    • Coordinating freight movements without assuming responsibility for the cargo or arranging transportation.

    • Communicating with a broker or shipper to arrange shipments for the motor carrier.

• Core prohibition — Effective 1 year after enactment, motor carriers are prohibited from utilizing the services of any such foreign dispatch service.

• Certification requirement — Motor carriers must certify (on applications for operating authority registration or renewal) that they do not use foreign dispatch services.

• Penalties — Any motor carrier that knowingly violates the prohibition (subsection b) or the certification rule (subsection c)—directly or indirectly—faces a civil penalty of not less than $50,000 per violation.