Rail industry, labor urge Senate to pass bill addressing cuts to unemployment benefits

By Trains Staff | March 5, 2024

Sequestration cuts took effect in May 2023, could last until 2030 without passage of legislation

WASHINGTON — A rare coalition of rail industry and labor groups have asked the Senate Budget Committee to approve legislation which would permanently exempt railroad unemployment and sickness benefits from sequestration budget cuts.

The bill in question, S.1274, the Railroad Employee Equity and Fairness Act, or REEF Act, was introduced by Sen. Deb. Fischer (R-Neb.); its 12 consponsors include six other Republicans, four Democrats, and two Independents. It is scheduled to be considered by the Budget Committee on Wednesday.

A letter sent Monday night to Democratic and Republican leadership of the committee notes that Railroad Unemployment Insurance Act benefits are the only federal unemployment insurance and sickness benefits program subject to sequestration, and that railroad workers saw a 5.7% cut to benefits — which currently amounts to $50 every pay period — as of May 10, 2023.

“Without Congressional intervention, outdated sequestration will continue to unfairly penalize these workers through Fiscal Year 2030,” says the letter, signed by the Association of American Railroads, the American Short Line and Regional Railroad Association, Amtrak, the International Brotherhood of Teamsters, and the Transportation Trades Department of the AFL-CIO. The letter urges the committee to approve the “common-sense, bipartisan bill” so the legislation can advance to the full Senate.

The full letter is available here.