Senate Hearing Spotlights Potential UP and NS Merger

by Sean Jeans-Gail | VP of Gov't Affairs + Policy

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On November 6, 2025, the Senate Committee on Commerce, Science, and Transportation convened a nomination hearing for Richard Kloster and Michelle Schultz, candidates for the Surface Transportation Board (STB). The hearing focused heavily on the nominees’ preparedness to evaluate the proposed merger between Union Pacific and Norfolk Southern—which, if approved, would be the largest rail consolidation in U.S. history—and their commitment to impartiality amid the political controversy following the White House’s decision to oust Board Member Robert Primus.

Senator Ben Ray Luján (D-NM) emphasized the STB’s role in safeguarding competition and protecting consumers from unfair practices. He raised concerns about President Trump’s removal of STB member Robert Primus, which is currently being litigated, calling it unlawful and politically motivated. Sen. Luján (after emphasizing that neither nominee would fill Primus's seat) urged both Kloster and Schultz to commit to independence from improper political influence: “We need to have your firm commitment that you will carry out your duties independent of improper political influence, if confirmed.”

Senator Tim Sheehy (R-MT) voiced bipartisan concerns about rail industry consolidation, noting that while he supports free market principles, the STB must ensure that mergers do not harm farmers, manufacturers, and rural communities. He asked both nominees to share their views on how the board should approach the merger. Schultz, who currently sits on the Board, acknowledged the gravity of the case, calling it “the most monumental transaction that has ever come before the board,” and pledged to thoroughly review the evidentiary record and applicable law.

Kloster pointed to his decades of experience in the rail industry experience, saying "I've spent my whole career in the rail industry, and I've seen all the mergers—the successes, but also the failures." He committed “to be objective, to be fair, to be impartial, to do all the research and analysis to come up with the right decision."

Senator Tammy Baldwin pressed both nominees to uphold the STB’s post-2001 merger standards, which require that Class I railroad mergers enhance competition, rather than simply8 preserve competition. Both Kloster and Schultz affirmed their commitment to follow the law and conduct a comprehensive evaluation.

The hearing underscored the critical role the STB will play in shaping the future of U.S. rail transportation, including for passenger rail. Our analysis of the UP and NS networks found:

• The UP and NS networks hosted 25 of 44 total Amtrak State-Supported and Long-Distance routes, or 57 percent.
• These 25 Amtrak routes carried more than 11 million passengers in 2024, or 63 percent of all Amtrak State-Supported and Long-Distance ridership.
• Of the 69 routes selected by the Federal Railroad Administration to be part of the Corridor Identification and Development Program, 33 currently travel or would travel over UP or NS trackage – just short of 48 percent.