State Lawmakers Warn STB Rail Merger Could Raise Costs and Reduce Competition
WASHINGTON DC – A coalition of state legislative leaders from across the country is urging federal regulators to pump the brakes on the proposed merger between Union Pacific and Norfolk Southern, warning that the deal could concentrate too much power in the nation’s rail system.
In a letter sent November 17 to the Surface Transportation Board, leaders from more than 20 states say the merged rail giant would control nearly 45 percent of U.S. rail tonnage and dominate key commodity markets that directly influence the cost of fuel, food, housing materials, and manufactured goods. The lawmakers argue that the result could be higher costs for families and businesses, fewer competitive shipping options for rural communities, and a greater risk of service disruptions across the supply chain.
Citing past rail mergers that led to operational meltdowns and nationwide shipping delays, the legislators call on the STB to thoroughly scrutinize the proposal and ensure that any approved transaction strengthens—not weakens—competition, service quality, and economic resilience.
Their full letter to the Surface Transportation Board follows below:
November 17, 2025
The Honorable Patrick Fuchs
Chairman
Surface Transportation Board
395 E Street, SW
Washington, D.C. 20423
The Honorable Karen Hedlund
Member
Surface Transportation Board
395 E Street, SW
Washington, D.C. 20423
The Honorable Michelle Schultz
Vice Chair
Surface Transportation Board
395 E Street, SW
Washington, D.C. 20423
Dear Chairman Fuchs, Vice Chair Schultz, and Member Hedlund:
As leaders committed to advancing economic opportunity, protecting free enterprise, and ensuring fair competition, we write to express our concerns about the proposed merger between Union Pacific (UP) and Norfolk Southern (NS). While we recognize the importance of private sector investment and efficiency, this merger raises serious questions about its long-term impact on competition, service reliability, and the cost of doing business in America.
If approved, the combined UP–NS system would control nearly 45 percent of all U.S. rail tonnage and hold dominant market share in critical commodity sectors including chemicals, metals, lumber, motor vehicles and equipment, crushed stone, sand and gravel, food and kindred products, and iron and steel scrap. These commodities directly affect the cost of consumer goods, housing, energy, and food—core expenses for American families and small businesses. Reduced competition in these areas will inevitably lead to higher prices and fewer choices. This merger could negatively affect America’s ability to compete with China, and it has the potential to pose significant risks for the industrial and agricultural production that powers state economies and the broader American manufacturing base.
Many shippers would face limited or no viable rail alternatives at origin or destination, creating a new generation of captive customers. This loss of routing flexibility and competitive pressure would be especially harmful to smaller communities and businesses that depend on reliable rail access to stay competitive in national and global markets.
Past mergers have shown that integration challenges can lead to widespread service disruptions, with ripple effects across the entire rail network. The proposed UP–NS merger spans 50,000 route miles across 43 states, and the risks of operational breakdowns and supply chain instability are real and significant.
It is vital that the STB use its process to fully consider how this merger will affect all stakeholders, including workers, manufacturers, farmers, and consumers, so that increased monopolistic power does not stifle innovation and productivity in industry, put inflationary pressure on household budgets, or otherwise burden the economy as a whole with the costs of this merger. We urge the Board to carefully evaluate this merger and ensure that any approved transaction clearly enhances freight rail competition, protects service quality, strengthens supply chains, improves safety, and supports a resilient freight rail system that works for all Americans.
Sincerely,
/s/ Warren Petersen
Senate President Warren Petersen, Arizona
/s/ Greg Hertz
Senate Taxation Chair Greg Hertz, Montana
/s/ T.J. Shope
Senate President Pro Tempore T.J. Shope, Arizona
/s/ Brandon Ler
Speaker of the House Brandon Ler, Montana
Senate Majority Leader John Kavanagh, Arizona
/s/ Steve Fitzpatrick
House Majority Leader Steve Fitzpatrick, Montana
/s/ Les Eaves
Legislative Council House Co-Chair Les Eaves, Arkansas
/s/ Anthony Bucco
Senate Republican Leader Anthony Bucco, New Jersey
Senate Republican Leader Cleave Simpson, Colorado
/s/ John DiMaio
Assembly Republican Leader John DiMaio, New Jersey
/s/ Ty Winter
House Assistant Republican Leader Ty Winter, Colorado
Senator Crystal Brantley, New Mexico
/s/ Stephen Harding
Senate Republican Leader Stephen Harding, Connecticut
/s/ Gail Armstrong
House Republican Leader Gail Armstrong, New Mexico
State Representative Michael Smith, Delaware
/s/ Rebecca Dow
House Republican Caucus Chair Rebecca Dow, New Mexico
House Majority Caucus Chair Bruce Williamson, Georgia
/s/ David Hogue
Senate Majority Leader David Hogue, North Dakota
/s/ Mark Harris
Senate Assistant Majority Leader Mark Harris, Idaho
Senate Assistant Majority Leader Jerry Klein, North Dakota
/s/ Jim Woodward
Senate Vice-Chair Finance Jim Woodward, Idaho
/s/ David Clemens
Senate Transportation Chair David Clemens, North Dakota
Senate Republican Leader Trey Stewart, Maine
/s/ Robin Weisz
Speaker of the House Robin Weisz, North Dakota
/s/ Patrick O’Connor
Senate Asst. Republican Leader Patrick O’Connor, Massachusetts
/s/ Mike Beltz
House Agriculture Chair Mike Beltz, North Dakota
/s/ Mark Johnson
Senate Republican Leader Mark Johnson, Minnesota
/s/ Jessica de la Cruz
Senate Republican Leader, Rhode Island
/s/ John Jasinski
Senate Deputy Republican Leader John Jasinski, Minnesota
/s/ Chris Karr
Senate President Pro Tempore Chris Karr, South Dakota
Senate Asst. Republican Leader Jordan Rasmusson, Minnesota
/s/ Randy Deibert
Senate Transportation Chair Randy Deibert, South Dakota
/s/ Harry Niska
House Republican Floor Leader Harry Niska, Minnesota
/s/ Casey Crabtree
Senate Commerce & Energy Chair Casey Crabtree, South Dakota
/s/ Jon Koznick
House Transportation Co-Chair Jon Koznick, Minnesota
House Joint Appropriations Chair Mike Derby, South Dakota
/s/ Josh Harkins
Senate Finance Chair Josh Harkins, Mississippi
House DOGE Chair Giovanni Capriglione, Texas
/s/ Chuck Younger
Senate Transportation Chair Chuck Younger, Mississippi
/s/ Charlie Geren
House Administration Chair Charlie Geren, Texas
/s/ Bill Pigott
House Agriculture Chair Bill Pigott, Mississippi
/s/ Cody Harris
House Natural Resources Chair Cody Harris, Texas
/s/ Jody Steverson
House Ways & Means Vice Chair Jody Steverson, Mississippi
/s/ Ronald Winterton
Senate Gov’t Operations Chair Ronald Winterton, Utah
/s/ Jason Bean
Senate Agriculture Chair Jason Bean, Missouri
/s/ Pattie McCoy
House Republican Leader Pattie McCoy, Vermont
/s/ Chad Perkins
House Speaker Pro Tempore Chad Perkins, Missouri
/s/ Tara Nethercott
Senate Majority Floor Leader Tara Nethercott, Wyoming
/s/ Matt Regier
Senate President Matt Regier, Montana
/s/ Scott Heiner
House Majority Floor Leader Scott Heiner, Wyoming
/s/ Ken Bogner
Senate President Pro Tempore Ken Bogner, Montana
/s/ John Braun
Senate Republican Leader John Braun, Washington
/s/ Tom McGillvray
Senate Majority Leader Tom McGillvray, Montana
House Republican Leader Drew Stokesbary, Washington
