New freight crew rule tests rail industry's clout, one year after East Palestine disaster

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The new rule stops short of the kind of major rail safety updates that the Biden administration and members of Congress had originally envisioned.

One year after the East Palestine, Ohio train derailment created an environmental disaster, the Biden administration unveiled new regulations intended to shore up freight rail safety.

Making any major updates to rail safety will require congressional funding that the freight industry opposes. The United States averages at least one train derailment every day. In 2023, there were seven rail-related employee deaths, said Buttigieg. He said the new rule will make railroads safer and prevent worker injuries and fatigue.Drone footage shows the freight train derailment in East Palestine, Ohio, U.S., February 6, 2023 in this screengrab obtained from a handout video released by the NTSB.

The stalling of the Railway Safety Act also underscores the power of the freight rail industry's Washington lobbying shop, the Association of American Railroads .Congress, according to data from the nonprofit Open Secrets. The bill that received more lobbying activity than any other was the Railway Safety Act.and Norfolk Southern, three of the nation's largest railroads, for comment on the new regulation. All three referred CNBC to the AAR.

Additionally, all Class I railroads, those with the highest operating revenues, currently run with two people, according to the ARA spokesperson.

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New freight crew rule tests rail industry's clout, one year after East Palestine disasterThe new rule stops short of the kind of major rail safety updates that the Biden administration and members of Congress had originally envisioned.
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