Particle.news

Download on the App Store

White House Ousts Surface Transportation Board Member as Rail Megamerger Review Advances

The dismissal could shift the board’s balance before it rules on Union Pacific’s $85 billion bid for Norfolk Southern.

Overview

  • Board member Robert Primus said he was terminated by email, called the action legally invalid, and vowed to continue his duties while weighing legal options.
  • The White House said Primus did not align with the President’s America First agenda and signaled it will nominate new members to the rail regulator soon.
  • The move creates a vacancy that could alter the Surface Transportation Board’s partisan makeup ahead of the merger decision, with any replacements requiring Senate confirmation.
  • Rail union SMART-TD denounced the firing as unprecedented and alleged improper influence by major carriers and hedge funds.
  • Union Pacific and Norfolk Southern shares rose after the news as the board reviews a deal that would create the first continuous transcontinental railroad.