Why It Matters

Congress is simultaneously pushing comprehensive rail safety reform while Norfolk Southern pursues a transformational $85 billion merger with Union Pacific that faces bipartisan congressional resistance. The Railway Safety Act of 2025 threatens to impose costly operational constraints—including stricter track inspections, hazmat notification requirements, and potential crew size mandates—while the proposed merger must survive intense scrutiny from lawmakers concerned that further industry consolidation will worsen service and costs for shippers.

Norfolk Southern’s strategic hiring of Michael Best Strategies LLC—a firm with expertise spanning technology, supply chains, and industrial policy rather than traditional rail expertise—suggests the company recognizes that its survival depends on navigating a policy environment where rail safety now intersects with environmental justice, labor concerns, and broader economic competitiveness.

By the Numbers

Norfolk Southern Corp. has filed 77 in-house lobbying reports between 2003 and 2025, accumulating $63.4 million in total expenditures. This third quarter filing represents Norfolk Southern’s newest external engagement: Michael Best Strategies LLC at $90,000 to lobby on railway safety and general transportation issues.

The hire marks a strategic shift. Rather than adding another traditional rail-focused firm, the company brought on Alexander J. Angelson, whose background spans technology, energy, and manufacturing supply chains. Angelson’s clients include T-Mobile USA Inc. on 5G policy, Microsoft Corp. on AI, and United Airlines Inc. on aviation regulation.

The Agenda

Norfolk Southern is lobbying on railway safety and general railroad transportation issues. The company faces intense congressional pressure over freight rail safety, with hazmat derailments striking roughly every two months and 18 releasing hazardous materials in the Ohio River Basin since 1998.

Multiple bipartisan bills are advancing, including the Railway Safety Act of 2025, which mandates hazmat notifications, stricter inspections, and increased penalties. The lobbying also intersects with Norfolk Southern’s proposed merger with Union Pacific. Eighteen bipartisan senators have urged rigorous regulatory review, while labor unions have opposed the deal on safety grounds.

Broader Context

Congress is intensifying pressure on freight railroads through multiple legislative vehicles. The Railway Safety Act of 2025 has gained bipartisan support following repeated hazmat derailments, including a July 2025 Norfolk Southern incident in Illinois involving faulty maintenance. Research shows derailments release hazardous materials 35 times more frequently in vulnerable communities, creating environmental justice dimensions.

The most significant flash point involves the Union Pacific merger. Eighteen bipartisan senators urged regulatory review, citing concerns that further consolidation among Class I railroads—which control 90% of U.S. freight traffic—could worsen service. Shipper coalitions have cited the 1996 Union Pacific-Southern Pacific merger’s $4 billion economic impact as precedent for opposing consolidation.

Between The Lines

Key congressional players are driving the agenda. Reps. Chris Deluzio (D-PA) and Nick LaLota (R-NY) champion the Railway Safety Act, while Senators Tammy Baldwin (D-WI) and Roger Marshall (R-KS) introduced the Reliable Rail Service Act targeting shipper complaints about poor service and high costs.

Individual members remain vocal on rail accountability. Senator Baldwin demanded action from Canadian Pacific Kansas City following repeated Wisconsin derailments, while Senator Maria Cantwell and Commerce Committee Democrats opposed an industry waiver request to reduce track inspection frequency.

Competitive Landscape

Norfolk Southern faces coordinated opposition across multiple stakeholder groups. Seven industry groups representing shippers have publicly opposed further railroad mergers, citing the disastrous 1996 Union Pacific-Southern Pacific merger. Labor organizations are similarly mobilized, with Transport Workers Union President John Samuelsen warning that consolidation would increase disaster risk.

The Bottom Line

The company recognizes rail policy now intersects with technology modernization, environmental regulations, and supply chain resilience. This strategic lobbying pivot comes as Congress pursues multiple safety bills while the company navigates regulatory review of its proposed merger amid bipartisan skepticism about further industry consolidation.

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