Coalition urges Congress to reject freight rail regulation in transportation bill

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The Competitive Enterprise Institute today sent a coalition letter to transportation committee chairs in Congress opposing the idea of imposing, as part of must-pass surface transportation reauthorization, burdensome, unneeded mandates on freight rail companies.

“Railway Safety Act-style mandates would impose extensive new regulatory requirements on freight railroads and the broader supply chain without clear evidence of improved safety outcomes,” the coalition pointed out. “That means higher operating costs, reduced flexibility, and higher prices for American consumers.”

“Freight rail is a critical backbone of the U.S. supply chain. Increases in rail costs flow directly into the price of food, fuel, building materials, manufactured goods, and energy. Adding new regulatory mandates to surface transportation legislation would undermine stated goals of affordability, competitiveness, and economic stability.”

The letter warned specifically against:

•            Unneeded crew-size mandates;
•            Overbroad hazardous material definitions;
•            Inspection requirements focused on minimum time thresholds rather than quality or outcomes.
•            Technology prescriptions that discourage next-generation safety innovation.

The letter was signed by 36 free market organizations and individuals.