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Sens. Charles Schumer of New York and Barbara Boxer of California say five major rental car companies have agreed to stop leasing and selling vehicles under safety recalls.
The senators say the agreement involving Enterprise, Hertz, Avis, Dollar Thrifty and National will pave the way for legislation covering the industry.
The bill is expected to be voted on during the upcoming lame duck session.
The announcement is being made in Washington with relatives of two women from California who died in a car fire in a vehicle that the senators say was under a safety recall.
The companies represent more than 90 percent of the rental car industry.
Consumer groups call it a major improvement in auto safety because rental car agencies are the biggest buyers of new cars.