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Yeah but it seems they are being rented by people in plain clothes, as apparently several companies are already trying to refuse.
In particular one truck rental place was named that they were complaining that their trucks are not for transporting people in the cargo space.
In any case, if I rent a car where I live, and run a red light, commit a speeding offence, park illegally and get it towed, what usually happens is that the car gets treated the same way as any other car, the owning rental company gets charged and fined, and then they put on massive fees and forward the problem to me.
Why can't they just pull over the vehicle, impound it, and have everything happen like it would with anyone else?
Seems to me (non-lawyer) like they can put out a form like "Are you renting this vehicle on behalf of a federal agency, or to accomplish work for a federal agency Y/N" and if the ICE agents lie on the form, the rental company can now sue the government for fraud. I imagine the individual ICE agent would also be in breach of contract or something.
I know someone who works for a federal agency (DOI, not DOJ/DOD) and they rent cars on behalf of the government frequently when they need to travel to accomplish their work (or they used to, in the before times). But they're like, doing normal, non-reprehensible things with the car... not filling it up with detainees.
They can do both, and I imagine they probably will.
I really wish I had that answer, to me it makes the most sense too.
Like you said though, the fines would go to the rental company, and thats the liability we are talking about here.