Portman, Klobuchar, Fischer, Brown Introduce Bipartisan Bill to Reinstate Railroad Unemployment Benefits

Press Release

Today, U.S. Senators Rob Portman (R-OH), Amy Klobuchar (D-MN), Deb Fischer (R-NE), and Sherrod Brown (D-OH) introduced the Railroad Employee Equality and Fairness Act, which would end the sequester on the Railroad Retirement Board's (RRB) Unemployment Insurance Account. Due to the Budget Control Act of 2011, and a subsequent sequestration order to implement mandated spending cuts, railroad unemployment benefits have been reduced by a set percentage that is subject to revision at the beginning of each fiscal year. Currently, the sequester, as it relates to the RRB, continues until FY 2030. Without this legislation, it is expected that the sequestration will result in a 5.7 percent reduction in railroad unemployment benefits through FY 2030. Since most interstate railroad workers' payroll taxes are diverted to the RRB, unemployed railroad workers are not eligible for federal unemployment insurance benefits, which were not subject to the sequester. This resulted in railroad workers taking a cut in expected benefits that the general public was not subject to. This is particularly concerning during the ongoing COVID-19 pandemic. In FY 2019, the RRB received 70,065 unemployment claims. As of FY 2020, they have received 234,441 claims, a 234.6 percent increase. In Ohio, claims have increased from 3,184 in 2019 to 8,554 in 2020, a 168.6 percent increase.

"I'm proud to introduce this bipartisan legislation to ensure that unemployed railroad workers receive fair and equal unemployment benefits. This legislation would remove the harmful sequester that largely singled out railroad workers' unemployment benefits during the ongoing COVID-19 pandemic. The impact of the sequester has meant these railroad workers have not received the full unemployment insurance benefits that are due to them. The COVID-19 pandemic has caused nearly five times as many Ohio railroad workers to lose their jobs through no fault of their own and I urge my colleagues to join me in ensuring they are eligible for the same full unemployment benefits as all Americans," said Portman.

"We must provide unemployed workers with access to benefits that will help them get back on their feet," said Senator Klobuchar. "During this pandemic and for years to come, this bipartisan legislation will secure critical support for unemployed railroad workers. As we boost our transportation system and rebuild our economy, I'm committed to ensuring workers have fair, equitable benefits."

"Railroad workers are essential to keeping Nebraska's economy running and the country connected. These workers were singled out in past legislation that reduced their unemployment and sick leave benefits. This bipartisan legislation we are introducing today would provide a permanent fix to ensure railroad workers receive the full benefits they deserve," said Senator Fischer.

"We know this crisis has been challenging for so many American workers and families, but the economic impacts have only been exaggerated for railroad workers who's federal unemployment benefits have been unfairly cut. This bipartisan bill will put a stop to these cuts and ensure our railroad workers have access to the benefits they've earned," said Senator Brown.

"Like so many of their sisters and brothers on the frontlines of our transportation system, freight rail workers have risked their health and wellbeing to work through a global pandemic. Unlike other frontline transportation workers, however, our freight rail workforce has not received the full unemployment insurance benefits owed to them because of an unfair sequester on those benefits by our federal government," said Greg Regan, president of the 33-union Transportation Trades Department, AFL-CIO (TTD). "On behalf of rail labor, we applaud Sens. Portman, Brown, Klobuchar and Fischer for introducing the Railroad Unemployment Equity and Fairness (REEF) Act, which will ensure railroad workers who have lost their jobs, been diagnosed with COVID-19, or are caring for sick family members will be no longer be unfairly penalized as our country grapples with economic uncertainty. There is no better time than now to fix this congressional mistake and ensure that railroaders and their families are no longer short-changed. Passage of the REEF Act will provide this certainty."

"Sen. Portman's legislation is a common-sense measure that is long overdue. Affected railroaders and their families should not be singled out and penalized from receiving full unemployment benefits, and Sen. Portman's legislation rightfully restores equity to the rail unemployment insurance program by removing the arbitrary sequester limitation," said Ian Jefferies, president and CEO of the Association of American Railroads (AAR).