On September 15, 2025, the U.S. Small Business Administration’s Office of Advocacy (Advocacy) submitted comments to the Federal Railroad Administration (FRA) on its proposed Repealing Special Approval Requirement for Freight Cars More Than 50 Years Old (50-Year-Old Freight Car) rule.[1] The proposed rule would repeal and replace the current requirement to obtain “special approval” from the FRA to place or continue a freight car in service if it is more than 50 years old. The new rule would instead mandate uniform safety requirements where railroads would conduct comprehensive shop inspections by a designated inspector and certify that the freight car is safe for service.
The FRA states that the new procedures would provide an equivalent level of safety while reducing burdens on railroads. However, small railroad representatives had recommended that the FRA repeal the 50-year limit, not replace it with a new, costly, and burdensome approval process.
- In furtherance of the President’s goals of reducing regulatory burdens, the Office of Advocacy hosted a small business regulatory roundtable on April 14, 2025, to hear from small business representatives about Department of Transportation regulations that are burdensome and in need of reform. The FRA’s 50-Year-Old Freight Car regulation was one of the issues raised and was included in Advocacy’s letter to DOT, dated May 5, 2025.
- The RFA requires that every agency prepare and publish for public comment an initial regulatory flexibility analysis for each proposed rule unless the head of the agency certifies that the proposed rule, if promulgated, will not have a significant economic impact on a substantial number of small entities.
- The FRA certified the proposed rule under the RFA based on its determination that the proposed rule is voluntary and merely offers flexibility to any small entities that decide to utilize it.
- Advocacy disagrees with the FRA’s conclusion and believes that the rule would impose new, de facto mandatory procedures that railroads must comply with to keep 50-year-old rail cars in service.
- Advocacy recommends that the FRA reconsider the impact of this proposed rule on small entities and consider significant alternatives. One alternative is to remove the 50-year restriction and rely on other existing regulations and industry safety standards.
[1] 90 Fed. Reg. 28633 (published Jul. 1, 2025).
COMMENT LETTER
FRA’s Proposed Repealing Special Approval Requirement for Freight Cars More Than 50 Years Old
(PDF, 182KB)
CONTACT:
Bruce Lundegren
EMAIL:
Letters to Agencies