Destructive Reregulation

Large companies that are unhappy with their shipping rates are pushing a proposal that would reregulate the rail industry. This legislation (S. 953 and H.R. 2125) would give the federal government near total authority over how railroads operate - they would control everything from rates to routes.

Not only would this be remarkably inefficient but it would also turn back the clock on over 25 years of progress. Before railroads were deregulated in 1980, many railroads were nearly bankrupt. They were regulated so heavily that they could not make enough money to invest in their infrastructure. Since 1980, however, the rail industry has a lot to be proud of - rates are down and productivity is up. Investment in maintenance and capacity expansion are at record levels. Job opportunities and the railroad retirement system are strong.

Reregulating railroads would stop this progress in its tracks. Government interference in the rail industry would lead to less investment in infrastructure, which would lead to less capacity, poorer service, and fewer orders. These conditions would lead to fewer jobs and a weaker railroad retirement system, as well.

Please help prevent this dangerous legislation from becoming law.

Read through the links below to learn more about the effects of S. 953 and H.R. 2125.