The bill would permanently remove a federal requirement that forces certain automobile transport trucks to attach warning flags when vehicles extend beyond the back of the trailer.
ATA says the rule is outdated because the vehicles being hauled already have headlights, taillights, and reflective safety equipment built into them.
Industry officials also say attaching warning flags can damage new vehicles during transport.
Federal regulators first approved a temporary waiver in 2019, and the waiver was extended again in 2024 after officials found no major safety problems connected to the change.
Supporters of the bill say making the waiver permanent would reduce paperwork, lower costs, and help auto haulers operate more efficiently.
The proposed legislation has support from both Republican and Democratic lawmakers.