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Legislative & Litigation Update, January 2025

Writer's picture: Tate LindenTate Linden

A new era begins.


Rail Legislative & Litigation Update: Navigating Change in 2025

The Trump administration’s recent actions, along with state-level responses, are set to bring notable changes for rail communities. From environmental regulations to trade policies and executive orders, these developments will impact both the rail industry and the towns that host it.


Environmental Policy Changes:

California has withdrawn its request for stricter emissions regulations for locomotives and trucks, anticipating that the current administration wouldn’t support them. This decision eases compliance burdens for railroads, enabling longer equipment use cycles. However, communities concerned about air quality will need to explore alternative solutions. We’ve heard talk that a stronger rail industry will have greater capacity to invest in cleaner technologies, and hope to find that’s the case. Railtowns.org encourages collaboration with railroads and state-level programs to support sustainability.


Trade Policy & Rail Impacts:

Upcoming tariffs on imports from Mexico and Canada could disrupt rail traffic, affecting local economies and carriers reliant on cross-border trade. CPKC CEO Keith Creel has highlighted the importance of the existing terms - USMCA - noting a 20% growth in trade under the agreement. The rail industry is a staunch defender and proponent of free trade, and these tariffs will make free trade impossible. We’re hopeful that some portion of funds collected would be earmarked to improve America’s transportation infrastructure - which would ultimately benefit railroads and railtowns, but for the moment that’s just wishful thinking. 


Executive Order on LNG Transport:

A new executive order directs federal agencies to revisit regulations on transporting liquefied natural gas (LNG) by rail. This move could reverse recent court decisions that halted LNG rail shipments, potentially increasing rail traffic while raising safety concerns for host communities. The industry may see economic benefits, but infrastructure capacity and safety preparedness will be critical considerations for towns along these routes.


Key Federal Appointments:

Sean Duffy, U.S. Department of Transportation: Pledges to restore global confidence in U.S. transportation systems.

David Fink, Federal Railroad Administration: A fifth-generation railroader with leadership experience at General Motors and Pan Am Railways, expected to focus on safety and technological advancements.


Looking Ahead:

Many experts predict that rail infrastructure funding - outside of key strategic projects - may face challenges under the new administration. Despite this, Railtowns.org sees opportunities to enhance America’s rail system through strategic investments, community partnerships, and advocacy for improved safety and accessibility. While the approach we’ll take has shifted, our mission stands.


We’re finding the fixes and funding necessary to make rail towns safe, accessible, and thriving. We help bridge the gap between railroads and communities, provide resources and information to local leaders, and identify sources of funding for infrastructure improvements.


With the right partnerships and strategic focus, the coming years will bring meaningful advancements in rail operations and community well-being. Railtowns.org is committed to ensuring rail remains an asset—not an obstacle—for the towns it serves.


Stay informed and engaged as we work together to address the evolving landscape of rail infrastructure and policy. If you'd to get these directly to your inbox, you’re warmly invited to sign up for our mailing list on our homepage!



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