As technology rapidly transforms the freight rail industry, it’s time for policymakers to revisit and revise existing regulations, rather than simply layering on more restrictions. Innovations like autonomous inspections, predictive maintenance, and data-driven decision-making are reshaping how railroads could operate, offering unprecedented opportunities for efficiency, safety, and sustainability. Yet, outdated regulations, often crafted in an era of slower technological progress, fail to account for these advancements. To keep pace with the future, we must modernize the regulatory framework, ensuring it fosters innovation while enhancing safety and reliability.
Under President Biden, the Federal Railroad Administration (FRA) passed a rule requiring two-person crews on major freight rail routes—a mandate that’s not commonly found in other countries. While intended to increase safety, this requirement drives up shipping costs without providing clear safety benefits. It appears more as a union gift, paid for by higher consumer prices, to preserve jobs, rather than addressing real safety concerns.
Following the recent two-year anniversary of the train derailment in East Palestine, Ohio, some lawmakers are pushing new legislation to add further burdens to the freight rail industry. While some of these measures aim to address safety, many are counterproductive and could exacerbate existing challenges. For instance, the Railway Safety Act, first proposed in 2023, is back and would codify the two-person crew mandate into law. Its provisions for additional inspections would inflate shipping costs, which in turn would raise consumer prices. The previous version of this bill even insisted on union workers conducting these inspections, which seemed more about benefiting unions than enhancing safety. The latest iteration of the bill is likely to follow the same path.
An updated version of the RAIL Act is also under consideration. This proposal would impose excessive regulations on train length, contents, routes, speed, and would require hotbox monitors for every 10 miles of track—in both populated and rural areas. Adding the two-person crew mandate to the mix this time, each of these provisions would drive up shipping costs and consumer prices, with little or no tangible safety benefits.
The hotbox monitor requirement is particularly poorly conceived. Hotbox monitors measure the temperature of trains’ wheels and axles to ensure they aren’t being overheated, which can lead to derailments. However, imposing a blanket requirement, regardless of the area’s risk level, does not account for the distinct safety needs of populated versus unpopulated ones.
These inflated shipping costs don’t just hurt businesses—they push more hazardous materials onto trucks, which leads to more accidents, pollution, and burdens on taxpayers for road maintenance. These regulatory overreaches would erode investments in rail safety while shifting the risk to our highways.
Rather than mandating more crew members, we should be embracing technology that enables trains to operate autonomously, improving both safety and efficiency. While the U.S. may not be suited to adopt Japan’s plan for automated trucking, automated systems could reduce train accidents by as much as one-third.
China is already leading the way in automated freight trains. A recent test demonstrated increased speed and safety, with expectations of reduced energy consumption. What’s more embarrassing is even Europe, a continent generally falling behind in technology, is ahead of the U.S. in rail automation.
The biggest obstacle to technological progress in the rail industry is ironically railroad unions. Some unions have even tried to block the testing of zero-emission, autonomous railcars, which would compete with human drivers. This resistance risks stifling the development of innovative technologies that could improve safety and lower costs in the long term.
As technology advances, the role of human error in train operations can be reduced. Yet unions, in an effort to protect jobs that are becoming obsolete, push against these technologies. Technology is improving in both driving and inspecting trains, yet American rail inspection regulations haven’t changed since 1971. This outdated mindset, reminiscent of the Luddite movement during the Industrial Revolution, holds society back from embracing innovations that could benefit everyone.
Rather than imposing more burdens on the freight rail industry, Congress should revisit and update regulations to reflect today’s reality, where computers and automation are ubiquitous. It’s time to modernize rail regulations and stop relying on rules written during an era when floppy disks were cutting-edge technology.
Justin Leventhal is a senior policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on Twitter @ConsumerPal.