A second Donald Trump Administration is poised to usher in notable modifications in U.S. passenger and freight rail coverage.
Throughout President Trump’s first time period, passenger rail was not a major focus. The President-Elect’s previous actions and marketing campaign statements point out that it’s unlikely to turn out to be a precedence in his upcoming time period. The shift in passenger rail coverage might embrace lowered federal assist for current passenger rail companies and high-speed rail initiatives. Moreover, public transit techniques, which depend on federal funding, might face challenges in securing sources for the upkeep and growth of rail techniques because of cuts in discretionary transportation funding. Deregulation of the passenger and freight rail industries, which President Trump pursued in his first time period, will probably resume in his second time period.
In late December, the President-Elect took step one in shaping his administration’s method to rail coverage by choosing former Pan Am Railways CEO David Fink to guide the Federal Railroad Administration (FRA). With the Infrastructure Funding and Jobs Act (IIJA) expiring in September 2026, the Trump Administration could have the chance to craft its personal floor transportation reauthorization invoice, shaping rail coverage for years to come back. Because the administration’s insurance policies unfold, stakeholders within the rail sector will have to be ready to adapt to an evolving coverage panorama formed by dips in funding for passenger rail and a laissez-faire method to regulation.
Funding Cuts
The Trump Administration is anticipated to implement funds cuts that would considerably affect numerous passenger rail initiatives. Particularly, the administration and congressional Republicans might try to offset annual passenger rail funding utilizing superior appropriations supplied by the IIJA, which included $66 billion in superior appropriations for rail initiatives.1
Packages such because the Federal State Partnership for Intercity Passenger Rail (Fed-State) and grants to Amtrak are predictable targets for funding cuts throughout the annual appropriations course of. Congress and the incoming administration might additionally search to chop down obligations for already awarded initiatives, notably these in Democratic jurisdictions. Nevertheless, the Consolidated Rail Infrastructure and Security Enhancements (CRISI) grants and their recognition amongst shortline railroads could have a champion within the new FRA administrator, so anticipate the main target to be on this program within the subsequent reauthorization.
The incoming administration would possibly discover choices to cut back working subsidies and encourage state or personal sector funding for native transit techniques, moderately than counting on federal funding. These approaches are all consistent with the broader Republican initiative to cut back discretionary transportation funding.
Amtrak
In distinction to President Joe Biden’s rail-focused infrastructure spending, which has directed billions to Amtrak, the Trump Administration might try to cut back funding for the Amtrak Northeast Hall (NEC) and Amtrak Nationwide Community accounts or restrict funding to important routes. Price range proposals throughout President Trump’s first time period usually really helpful slicing Amtrak’s funding by 40 p.c to 50 p.c and eliminating Amtrak’s long-distance routes.2 The administration indicated that funding cuts have been supposed to remove extreme spending on routes with low ridership and redirect funds to high-traffic routes. Nonetheless, the NEC, which is the busiest rail line within the U.S.,3 was additionally topic to proposed cuts in funding.
Excessive-Velocity Rail
Although the Biden Administration supported numerous high-speed rail initiatives, the Trump Administration is just not anticipated to proceed this stage of assist. Though President-Elect Trump expressed assist for high-speed rail on the 2024 marketing campaign path, the primary Trump Administration repeatedly known as for cuts to Amtrak, which operates a number of high-speed trains on the NEC, and to California’s high-speed rail challenge.
In 2019, the Trump Administration canceled a $929 million grant for California’s high-speed rail challenge.4 This transfer was a part of a broader effort to claw again practically $2.5 billion in federal funds awarded to the challenge,5 which is almost $100 billion over funds.
Congressional Republicans largely supported these proposed cuts throughout President Trump’s first time period and are anticipated to take the same stance throughout his second time period. Though some GOP lawmakers are supportive of high-speed rail, interstate freeway improvement, which congressional Republicans view as extra useful to rural Individuals, will undoubtedly take priority over high-speed rail in funding discussions on Capitol Hill throughout the 119th Congress.
Regulatory and Labor Points
In the course of the first Trump Administration, the president labored to roll again rules impacting the rail business. Notably, the Trump Administration scrapped an Obama-era rule that required electronically managed pneumatic (ECP) brakes on trains carrying flammable hazardous supplies6 and eased hazardous supplies rules (HMR) to permit for the majority transport of refrigerated liquefied pure fuel (LNG) in rail tank vehicles.7 Count on a second Trump Administration to proceed deregulating the rail business.
The incoming Trump Administration is also anticipated to promulgate guidelines and frameworks permitting for the elevated presence of automated applied sciences throughout all modes of transportation, together with rail. Throughout a second Trump time period, anticipate railroads to get the inexperienced mild on elevated utilization of automated monitor inspection (ATI) in lieu of visible inspections, a measure that can put his administration at odds with organized labor in its resistance of automation.8
Wanting Forward
Although a second Trump Administration might pose challenges for passenger rail, the rail business has a novel alternative to interact proactively with the incoming administration by making an attempt to align its targets with the administration’s priorities. Business stakeholders ought to make a compelling case for continued funding in passenger rail by emphasizing financial advantages resembling job creation, assist for the U.S. transportation provide chain and regional connectivity. By partaking in constructive dialogue about deregulation, the business can work with the administration to make sure that security and effectivity are maintained whereas embracing technological developments.
20 Posts in 20 Days Resulting in Inauguration Day on Jan. 20
Holland & Knight’s Transportation & Infrastructure Business Sector Group is ready to help business purchasers in adapting to the anticipated modifications by the brand new administration. Our workforce is writing new weblog posts every day main as much as President-Elect Donald J. Trump’s inauguration, with insights concerning probably impacts on the varied segments of the business, together with Aviation, Building, Maritime, Freight Rail, Motor Carriers, Transit and Autonomous Transportation. Bookmark our Election Impacts on Transportation & Infrastructure useful resource web page to comply with alongside.
Notes
1 FRA (final up to date Nov. 15, 2024).
2 Reuters, „Trump proposes slicing Amtrak funding, boosting infrastructure spending“ (Feb. 10, 2020).
3 Fiscal 12 months 2023 NEC Annual Report (34).
5 U.S. Division of Transportation (Feb. 19, 2019).
6 Federal Register, „Hazardous Supplies: Elimination of Electronically Managed Pneumatic Brake System Necessities for Excessive Hazard Flammable Unit Trains“ (Sept. 25, 2019).
7 Federal Register, „Hazardous Supplies: Liquefied Pure Fuel by Rail“ (July 24, 2020).
8 AFL-CIO Transportation Trades Division, „Transportation Labor Requires Employee Protections Amidst the Growth of Autonomous & Automated Rail Applied sciences“ Nov. 21, 2024.
