Senate Commerce Subcommittee Hearing Flags Funding Cliff, Safety Gaps and Regulatory Barriers Ahead of Rail Reauthorization

At a Senate Commerce Committee subcommittee hearing, federal and industry witnesses urged Congress to preserve and expand funding for rail programs, modernize regulatory rules that they said block new safety technology, and improve communication with local officials and first responders after derailments and grade-crossing incidents.

The discussion centered on three near-term priorities for the next surface transportation reauthorization: keep grant programs with advanced appropriations to avoid a funding “cliff”; update prescriptive safety rules to allow validated new technology; and strengthen information flows between railroads, local governments and emergency responders.

Why it matters: witnesses said federal grants created by the Bipartisan Infrastructure Law enabled projects now underway—such as grade crossing eliminations and short-line upgrades—but many programs use advanced appropriations that will expire unless reauthorized. Panelists warned that pausing those funds would delay critical safety and capacity projects, raise costs and jeopardize rural and port-dependent supply chains.

Association of American Railroads President and CEO Ian Jeffries told the subcommittee the industry invests heavily in its network and urged an outcomes-based regulatory approach. “Railroads build, maintain, and invest in their own network to the tune of nearly $25,000,000,000 in annual investment,” Jeffries said, adding that the committee should favor “performance based regulations that reward outcomes, not outdated processes.”

Short-line operators and allies described different but related needs. Peter Gilbertson, president and CEO of Anacostia Rail Holdings, said short lines collectively operate roughly 50,000 miles of track and frequently run over infrastructure that received little prior capital investment. “Short lines are entrepreneurial small businesses,” Gilbertson said, and he urged continued direct-access federal programs such as the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program, which he said has delivered billions to short-line projects.

Private passenger-rail developers pressed for grant-eligibility and permitting changes. Hussain Cumber, senior advisor to Brightline Holdings, said Brightline has invested more than $6,000,000,000 of private capital in Florida and argued that privately developed corridors should be directly eligible for USDOT and FRA discretionary grants. Cumber also recommended clearer NEPA delegation to states for projects in existing transportation corridors and urged tightening waiver and pilot timelines so firms can test new vehicles and systems more predictably.

Local-government representatives emphasized safety and local impacts. Clarence Anthony, CEO and executive director of the National League of Cities, told senators that nearly 70% of recent derailments occur inside cities, often in smaller communities, and called for enhanced information sharing between railroads and local first responders. “Congress is the only level of government full and unquestionable authority to establish the rail safety improvements needed for American communities, emergency responders, rail workers, and of course rail customers,” Anthony said.

Committee members and witnesses repeatedly cited the 2023 Norfolk Southern derailment in East Palestine, Ohio, and a string of smaller derailments and close calls as evidence that communities still face risks. Senators and witnesses said grade-crossing elimination grants, other FRA discretionary funds and investments in sensor and automated-inspection technologies can reduce those risks.

Technology and regulatory change was a consistent theme. Witnesses described “autonomous track inspection” and AI-enabled camera systems that can inspect tracks from revenue trains and identify defects more frequently and with higher precision than manual walks. Jeffries noted early pilot data showing “90% improvement in defect detection” with automated inspection and urged a data-driven path to regulatory acceptance. Cumber gave examples where U.S. regulatory requirements—written for older equipment—slowed testing of new battery-electric autonomous rail vehicles and broken-rail prevention systems used overseas.

Panelists said waiver and pilot programs at FRA must be more timely and transparent so operators can gather safety data and regulators can adopt performance standards. Gilbertson and others urged advanced appropriations and more predictable grant execution to permit planning and leverage nonfederal matching funds; Gilbertson recommended advanced appropriations for CRISI to reduce year-to-year uncertainty.

On passenger rail and operations, senators pressed the Association of American Railroads on Amtrak on-time issues and host-railroad preference. Jeffries said routes and schedules have been updated in negotiation with host carriers and Amtrak but acknowledged long-distance routes still lag on on-time performance; he described “preference” as requiring reasonable operational accommodation rather than clearing all other traffic for every passenger train.

Labor and eligibility questions surfaced in exchanges about Brightline. Sen. Ed Markey noted ongoing jurisdictional and organizing disputes relating to whether Brightline Florida is subject to the Railway Labor Act; Cumber said Brightline accepts the right of employees to organize but believes, in that case, the National Mediation Board lacked jurisdiction. The transcript records the committee’s questioning but does not record legislative action.

Senators also raised nonrail topics tied to funding fairness, citing the Highway Trust Fund’s future solvency and how funding models for road infrastructure affect competition between modes. Witnesses said Congress should consider funding models that align user costs with system maintenance.

The hearing closed with procedural deadlines recorded in the transcript: senators will have until close of business on Wednesday, June 25 to submit questions for the record; witnesses have until the end of day Wednesday, July 9 to respond.

Ending note: witnesses urged Congress to treat the next surface transportation bill as an opportunity to lock in multi-year funding, streamline grant and waiver processes, and adopt outcome-focused safety rules so validated technologies—automation, AI inspection, and new rolling stock—can be deployed without compromising safety.