Railroads Ditch Old Rules: STB Pushes Fairer Competition Ahead
Published Date: 1/9/2026
Proposed Rule
Summary
The Surface Transportation Board wants to scrap old rules that limit how rail companies compete with each other. This change lets the Board decide on special rail deals case-by-case, making competition fairer and more flexible. Rail companies and shippers should watch for comments due by March 10, 2026, with no immediate cost changes expected.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Repeal of Part 1144 Restores Board Discretion
The Surface Transportation Board proposes to repeal 49 CFR part 1144 and, instead, consider prescriptions of through routes, through rates, and reciprocal switching on a case-by-case basis under 49 U.S.C. 10705 and 11102(c). Comments on the proposed repeal are due by March 10, 2026, with reply comments due April 24, 2026.
Anticompetitive Conduct Test Removed
The Board proposes to eliminate part 1144's requirement that petitioners show 'anticompetitive conduct' as a prerequisite for prescribing reciprocal switching or through routes. The Board states that the anticompetitive-conduct standard has operated as a high barrier to relief for shippers.
Standing/Use Thresholds May Be Eliminated
The Board proposes to remove part 1144's requirement that petitioners show they have used or would use a through route or reciprocal switch for a 'significant portion' of their transportation needs. The Board expresses concern that the standing/use requirement could lock out small businesses from seeking competitive-access relief.
Case-by-Case Adjudication Instead of Rule
If part 1144 is repealed, the Board would decide requests for reciprocal switching, through routes, and through rates on a case-by-case basis under 49 U.S.C. 10705(b) and 11102(c), allowing the Board to weigh factors like carrier revenue needs, operational feasibility, and current rail operations in individual cases.
Limits on Product/Geographic Evidence Lifted
The Board proposes to drop part 1144's restrictions that limited consideration of product and geographic competition in prescription proceedings. The Board says it anticipates generally excluding such evidence in rate proceedings but that parties could present it in individual adjudications if timely indicated.
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Key Dates
Department and Agencies
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