The Trump Administration's Expected Impact on U.S. Rail

Jan 14, 2025 at 04:28 PM CST
A second Donald Trump Administration is poised to usher in notable changes in U.S. passenger and freight rail policy. During President Trump's first term, passenger rail was not a primary focus. The President-Elect's past actions and campaign statements indicate that it is unlikely to become a priority in his upcoming term. The shift in passenger rail policy may include reduced federal support for existing passenger rail services and high-speed rail projects. Additionally, public transit systems, which rely on federal funding, could face challenges in securing resources for the maintenance and expansion of rail systems due to cuts in discretionary transportation funding. Deregulation of the passenger and freight rail industries, which President Trump pursued in his first term, will likely resume in his second term. In late December, the President-Elect took the first step in shaping his administration's approach to rail policy by selecting former Pan Am Railways CEO David Fink to lead the Federal Railroad Administration (FRA). With the Infrastructure Investment and Jobs Act (IIJA) expiring in September 2026, the Trump Administration will have the opportunity to craft its own surface transportation reauthorization bill, shaping rail policy for years to come. As the administration's policies unfold, stakeholders in the rail sector will need to be prepared to adapt to an evolving policy landscape shaped by dips in funding for passenger rail and a laissez-faire approach to regulation.

Jan 14, 2025 at 04:28 PM CST

A second Donald Trump Administration is poised to usher in notable changes in U.S. passenger and freight rail policy.

During President Trump's first term, passenger rail was not a primary focus. The President-Elect's past actions and campaign statements indicate that it is unlikely to become a priority in his upcoming term. The shift in passenger rail policy may include reduced federal support for existing passenger rail services and high-speed rail projects. Additionally, public transit systems, which rely on federal funding, could face challenges in securing resources for the maintenance and expansion of rail systems due to cuts in discretionary transportation funding. Deregulation of the passenger and freight rail industries, which President Trump pursued in his first term, will likely resume in his second term.

In late December, the President-Elect took the first step in shaping his administration's approach to rail policy by selecting former Pan Am Railways CEO David Fink to lead the Federal Railroad Administration (FRA). With the Infrastructure Investment and Jobs Act (IIJA) expiring in September 2026, the Trump Administration will have the opportunity to craft its own surface transportation reauthorization bill, shaping rail policy for years to come. As the administration's policies unfold, stakeholders in the rail sector will need to be prepared to adapt to an evolving policy landscape shaped by dips in funding for passenger rail and a laissez-faire approach to regulation.