UP-NS merger, federal boards' independence are hot topics at Senate hearing
11/7/2025
By Julie Sneider, Senior Editor
The political independence of the National Transportation Safety Board and the Surface Transportation Board, as well as the proposed merger between Union Pacific Railroad and Norfolk Southern Railway, were the main topics discussed during a hearing held yesterday by the U.S. Senate Committee of Commerce, Science and Transportation.
U.S. Sen. Ted Cruz (R-Texas) called the hearing to review President Donald Trump’s nominations of airline captain John Deleeuw to serve on the NTSB; rail industry consultant Richard Kloster to join the STB; and current STB Vice President Michelle Schultz to assume a second STB term.
After the hearing began with a back-and-forth between Cruz and U.S. Sen. Ben Ray Lujan (D-N.M.) over which political party is responsible for the federal government shutdown, Lujan suggested the hearing on Deleeuw’s nomination should not be held until litigation is settled over Trump’s firing earlier this year of NTSB Vice Chairman Alvin Brown, who is now suing the administration for firing him without cause. Later in the hearing, Lujan also brought up Trump’s firing of STB member Robert Primus, who also has filed a lawsuit challenging his dismissal. Lujan noted that neither Schultz nor Kloster, if confirmed, would replace Primus.
However, Lujan raised Trump’s dismissal of Brown and Primus in the context of whether the nominees would remain impartial when reviewing matters brought before their respective boards.
Concerns over a ‘monumental’ merger case
After the nominees gave their opening statements, Sen. Tim Sheehy (R-Montana) brought up a recent letter to the STB from a bipartisan group of senators who expressed concerns about the impact a “mass consolidation” within the rail industry would have on a free market. Sheehy asked Kloster and Schultz if as STB members they would examine the merger proposal to ensure that farmers, ranchers, manufacturers and rural communities — who depend increasingly on a consolidated rail industry to serve them — would not be overlooked.
Schultz, who said she read the senators’ letter, observed the UP-NS merger application will be the most monumental case to ever come before the STB. As with all cases that come before the board, Schultz said she will review all components of the proposal, all comments for and against it, and all applicable laws and statutes that apply to it before making a decision on it.
Kloster told the committee that he has witnessed the successes and failures of railroad mergers during his longtime career in railroading.
“My view is that yes, this is the largest merger ever,” Kloster said. “And my commitment is to be objective, fair, impartial and to do all the research and analysis to come up with the right decision regarding this merger or any other case that comes before the board.”
Later, Sen. Lujan asked Schultz if she believes the STB is an independent agency — to which she responded yes. He then asked her whether STB Chairman Patrick Fuchs sent an email to agency staff in which he blamed Democrats for the government shutdown. Schultz said that Fuchs had sent such an email prior to the government shutting down.
Lujan said he found Fuchs’ email “concerning” and that it could be in violation of the Hatch Act, which prohibits federal employees from engaging in political activity while on duty.
A partisan email and a White House meeting
Sen. Tammy Baldwin (D-Wis.) continued down the same path of questioning as Lujan, saying that she is “deeply concerned” about the STB’s political independence. She brought up Fuchs’ email, as well as UP CEO Jim Vena’s recent meeting with Trump to discuss the merger and Vena’s contribution toward Trump’s planned White House ballroom. Baldwin also said that, after the meeting with Vena, Trump announced to the media that the UP-NS merger “sounds good to him.” She added that a merger of that magnitude would increase costs, create unreliable service for shippers and reduce overall competition.
Baldwin then asked Kloster and Schultz whether they would commit to remaining politically impartial when considering the merger “or do you plan to base your decision on what the president wants?”
Both said they would remain impartial. But Baldwin further pressed Schultz on whether she thought it “appropriate for the board leadership of an independent agency to circulate a clearly partisan email” to STB staff.
“I have to tell you that I was really disappointed to see this email,” the senator said. “It is unbecoming of an independent board — which is looking more like Donald Trump’s board with the illegal firing of Robert Primus.”
After asking Schultz whether she thought a “clearly partisan” email was appropriate to send to staff, Schultz reiterated that she would consider all cases before the board with impartiality and apart from politics.
Baldwin followed up again, this time asking Schultz if she believed Trump’s firing of Primus was justified. Schultz declined to answer that question, citing Primus’ pending litigation.
“More hypothetically, then, should the expectation be that, as board members, you will be removed if you don’t support the president’s agenda?” Baldwin asked Schultz.
Schultz responded that as someone who was nominated and is renominated by the president, she serves at the pleasure of the president “who has the power to appoint and the power to remove” STB members.
