Fischer Bill Ending Cuts to Railroad Benefits Heads to President

will protect railroad employees by ending government mandated cuts to their unemployment and sickness benefits once and for all.The bill now heads to the President's desk.

"Today marks a victory for our nation's railroad workers. My REEF Act will right the wrong of unfair cuts and ensure that the people who keep our trains moving receive the benefits they've earned. I look forward to seeing this bill signed into law," said Senator Fischer.

"For too long, budget sequestration of Railroad Retirement Board benefits has unjustly harmed thousands of Teamsters railroaders who find themselves in the difficult position of trying to support their families following layoffs, illnesses, and injuries. Today's victory ensures that not one more rail worker will be subjected to these cuts. The Teamsters thank Senator Fischer for her tireless effort over the years to ensure that the REEF Act becomes law," said Teamsters General President Sean M. O'Brien.

Without the hard work of Senator Fischer and her staff, the REEF Act would not be headed to the President's desk. This important legislation provides all railroaders and their families with the certainty that they will have access to the full benefits they have earned." said Association of American Railroads President and CEO Ian Jefferies.

"As America's largest transportation labor federation, we've seen firsthand how unemployment and sickness benefits are a lifeline for workers in times of need. After more than a decade of waiting, passenger and freight rail workers will finally receive the full value of the benefits they have earned. We thank Senator Fischer, Representative Schakowsky, and our congressional partners who got this bill across the finish line,"said AFL-CIO Transportation Trades Department (TTD) President Greg Regan.

"The REEF Act is a win for the railroad industry's workforce, and we were happy to work with both industry and labor partners on it under the leadership of Senator Fischer. The law will ensure that the unemployment and sickness safety nets in the railroad industry will be maintained fairly, while having no negative effect at all on federal finances,"said American Short Line and Regional Railroad Association (ASLRRA) President Chuck Baker, representing the nation's 603 short line railroads and their suppliers.

Background:

Railroad unemployment and sickness benefits are funded solely by railroads' and railroad workers' contributions. The Budget Control Act of 2011 and subsequent implementation mandates require railroad unemployment and sickness benefits to be reduced by a certain percentage each year. All other regular unemployment benefits are exempt from sequestration. Without the REEF Act, sequestration will likely result in a 5.7 percent reduction in railroad unemployment and sickness benefits through Fiscal Year (FY) 2030.

While a temporary version of the REEF Act was included in the COVID-19 relief bill passed in December 2020, that measure expired on May 10, 2023, 30 days after the expiration of COVID-19 national emergency declaration. Without this legislation, these benefits would be subject to sequestration through FY 2030.

In the Senate, the REEF Act is cosponsored by U.S. Senators Amy Klobuchar (D-Minn.) and Sherrod Brown (D-Ohio). Companion legislation was introduced in the House by U.S. Representative Jan Schakowsky (D-Ill.) and is cosponsored by U.S. Representatives Don Bacon (R-Neb.), Brian Fitzpatrick (R-Penn.), Jesús García (D-Ill.), and Pete Stauber (R-Minn.).

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