While many point to an overall freight slowdown, the reality is that freight rail traffic in 2025 has performed admirably, including as compared over the decades. Railroads have repeatedly weathered economic downturns by focusing on fundamentals: investment, innovation and maintaining a long-term view. Railroads will navigate current headwinds as well and will support lasting competitive policies that support their role in the supply chain.
Freight railroads privately own, operate and maintain their infrastructure. This self-sustaining model — supported by partial economic deregulation — creates market conditions that drive reinvestment in safety, technology and capacity, averaging $23 billion annually and totaling $26.8 billion in 2023. Through continuous investment in infrastructure, technology, workforce training and emergency preparedness, freight railroads have reduced the Class I mainline accident rate by 43% since 2005.
To sustain this progress, policymakers must uphold the principles that foster private investment: balance, consistency and flexibility. For instance, greater enforcement of federal preemption — supported by customers — prevents a patchwork of conflicting state and local regulations and supports industrial growth.
Federal safety regulators can also help by pursuing performance-based standards that define clear outcomes while allowing flexibility in how they are achieved. This approach encourages new solutions and ensures oversight evolves alongside technology, which is critical for a legacy industry operating under regulations that, in some cases, are more than 50 years old.
Modern, mode-neutral permitting and regulatory frameworks are also essential to advancing infrastructure investment and technology deployment. Aligning policies and streamlining approvals across modes would promote fair competition, strengthen supply chains and put dollars for infrastructure projects to work more quickly.
The 2026 surface transportation bill presents an opportunity to advance these and other forward-looking priorities. With smart policies, freight rail will continue powering US commerce and supporting sustainable growth.