The new president has wasted no time cutting back on over-regulation, which augurs well for railroads. Hopefully, we can look forward to a reduction in Federal Railroad Administration (FRA) red tape and more support for innovation in rail technology. On the other hand, prospects of federal funding cuts to passenger rail services are sending alarm bells ringing.
Here’s our take on what to expect from Trump’s second administration.
New appointments welcomed by railroads
The announcements of Sean Duffy as United States Secretary of Transportation, Patrick J. Fuchs as Chairman of the Surface Transportation Board, and former Pan Am Railway CEO David Fink as the next head of the FRA have been largely welcomed by railroads and industry bodies – with much hope resting on Fink in particular as a died-in-the-wool rail man with an insider’s understanding borne from decades of experience.
In an article for Railway Age, ASLRRA President Chuck Baker wrote that he was “cautiously optimistic” that the policy issues most important to the short line railroad industry will be heard and acted upon. He described the trio of new transportation appointments as “solid individuals with considerable knowledge about railroads and proven experience in problem solving”, going on to commend Fink as “a high energy, solution-minded strategist.” “Following his confirmation, [we] look forward to working with him on smart regulations that advance the safety of rail in the US and on expediting the FRA’s critical infrastructure investment programs, particularly CRISI (Consolidated Rail Infrastructure and Safety Improvements),” Baker added1.
The Association of American Railroads is also optimistic that the appointments may represent a significant step forward for regulatory reform2.
Is Trump good news for rail automation?
Rail insiders and analysts are predicting the Trump government will facilitate increased adoption of new generation rail technology, including AI-enhanced automation and predictive maintenance such as Remote Condition Monitoring.
In a blog published shortly before the inauguration, multinational law firm Holland & Knight pointed out that deregulation of the passenger and freight rail industries, which President Trump pursued in his first term, will likely resume in his second term3.
“The incoming Trump Administration also is anticipated to promulgate rules and frameworks allowing for the increased presence of automated technologies across all modes of transportation, including rail. During a second Trump term, expect railroads to get the green light on increased utilization of automated track inspection (ATI) in lieu of visual inspections, a measure that will put his administration at odds with organized labor in its resistance of automation”3.
The Information Technology and Innovation Foundation, an independent, nonpartisan research institute, views the change of government as a prime opportunity to integrate more AI-augmented automation into America’s transport systems. “When President Trump announced former Congressman Sean Duffy as his pick for Transportation Secretary…he called on his nominee to “usher in a golden age of travel,” writes ITIF Vice President Daniel Castro, who is also Director of the Foundation’s Center for Data Innovation4. “Indeed, travel—and transportation more broadly—stand to improve dramatically in the coming years if the Trump administration makes automation a priority.
“Greater use of technology-driven modernization, particularly artificial intelligence (AI), can improve efficiency and safety in America’s transportation systems. For example, AI can enhance air traffic safety and optimize flight paths, schedule the arrival and departure of vessels at ports to minimize delays, and monitor road and railways infrastructure to predict maintenance before failures occur….
“If the incoming Trump administration wants to create a golden age of transportation—improving both the safety and efficiency of passenger travel and freight movement—technology-driven automation should be a top priority from day one.”4
What about funding for passenger rail?
While passenger rail projects have increasingly attracted bipartisan support in recent years, the President’s lambasting of the publicly-funded California High-Speed Rail plan as “the worst-managed project” he has seen5 has sent a warning shot regarding federal funding for passenger rail projects.
Certainly, the American Public Transport Association (APTA) is keeping a close watch via its Executive and Regulatory Actions Tracker, which provides real-time updates and summaries of Executive Orders and other Administration missives that impact public transportation. In a statement to publicize a webinar on the first 30 days of the Trump Administration, held on February 20, APTA noted that there had already been numerous Executive Orders and other directives directly impacting public transportation, including funding freezes and the imposition of new tariffs6.
Holland & Knight predicts existing passenger rail services, high-speed rail projects and public transit systems could all face federal funding cuts. “Programs such as the Federal State Partnership for Intercity Passenger Rail (Fed-State) and grants to Amtrak are predictable targets for funding cuts during the annual appropriations process. Congress and the incoming administration could also seek to cut down obligations for already awarded projects, particularly those in Democratic jurisdictions.3”
Where to now?
The second Trump administration has been elected at a pivotal time for the railroad industry, both in terms of regulation and rail technology.
As the Infrastructure Investment and Jobs Act (IIJA) is due to expire in September 2026, Trump and his transportation team have the opportunity to play a significant role in the future of rail policy.
And as the use cases for rail automation software expand, Trump’s government is in the driver’s seat to accelerate the adoption of the latest rail technology and digital transformation of America’s rail networks. Let’s see what happens next.
Tracsis is the leading provider of software-based automation tools, trusted by railroads in North America including Class I, passenger and short line operators. Find out more.
1. https://www.railwayage.com/regulatory/why-i-remain-cautiously-optimistic/
6. https://aptapassengertransport.com/apta-resources-and-webinar-on-executive-orders-and-other-actions/