The Trump administration and Republicans in Congress have a historic opportunity to revamp America’s transportation sector and reassert free-market principles that will enhance travel, shipping, and the nation’s infrastructure.
The Biden-Harris administration abandoned market principles in their approach to the transportation sector, instead prioritizing niche interest groups, union bosses, and environmental activists. The results were harmful inflationary pressures and a series of supply chain crises, among them historically high levels of cargo ships stranded off port and impending labor strikes at the nation’s railroads and ports.
President Trump will chart a new course forward.
The Trump administration should reject the crusade against merger and acquisition activity that the previous administration pursued and instead restore the consumer welfare standard in antitrust cases, ensuring that the best interests of travelers are put first. In the airline sector, Biden’s Department of Justice sued to block a merger between Spirit Airlines and JetBlue, which resulted only in the bankruptcy of the former airline and worse outcomes for both employees and travelers.
Other government-imposed costs on air transportation, such as passenger facility charges, should be kept low to avoid inflation in the price of travel.
Free-market principles must also be restored in the railroad sector. The Surface Transportation Board (STB) and other regulatory bodies have been too quick to impose one-size-fits-all rules and engage in central planning rather than allowing markets to determine best outcomes.
For example, rate constraints for railroads are currently regulated under the revenue adequacy determination, which is purportedly used by the STB to ensure that railroads are not unduly profiting from uncompetitive markets. However, in today’s competitive market, the revenue adequacy determination only serves as a deterrent to long-term investment in railroads, ultimately leading to fewer choices and lower quality service. The Trump administration should eliminate this standard. The STB should also establish a more comprehensive view of the competitive market for railroads, accounting for factors such as geographic competition or competition from substitutable product groups which travel on alternate forms of transportation.
Instead of deferring to markets, regulatory bodies have largely deferred to union bosses under the Biden administration. The Trump administration should put an end to the union-driven trend of avoiding technological innovation and automation in transportation, especially in cases where automation poses no threat to safety. For example, the two-person crew mandate imposed on railroads by the Biden administration is little more than a union jobs program. Automated track inspections have also been found to improve safety outcomes.
A similar aversion to automation has been expressed by union bosses at the nation’s ports. While other countries pull ahead through technological innovation, U.S. ports have been ranked as some of the world’s least efficient. The biggest obstacle to improving performance remains the large labor unions which control the ports, as exemplified by International Longshoremen’s Association boss Harold Daggett, who in September threatened to “cripple” the U.S. economy if he did not obtain a new contract which continues to avoid automation. The Trump administration should put an end to the stranglehold that port union bosses have on the economy and help lower the price of commerce through innovation.
Unions have also imposed costly barriers to road transportation, including by pushing for the widespread elimination of independent contractor status for truckers as implemented by Julie Su during her time as California’s Labor Secretary. As Acting U.S. Secretary of Labor, Su attempted to bring her anti-independent contractor crusade national, threatening truckers as well as rideshare drivers at companies like Uber and Lyft. The Trump administration should ensure that those who drive for work can continue to operate as independent contractors if they so choose.
Infrastructure projects for the roads and bridges on which commerce relies have also faced delays and inflated costs in recent years. The Biden administration’s rules on project labor agreements and prevailing wages, favored by the leaders of unions, squander taxpayer dollars on inflated construction costs and reduce the amount of infrastructure that can be built. These costly rules should be overturned by the Trump administration and longer-term solutions should be pursued by Congress.
Roadways and railroads alike would benefit from permitting reform in the 119th Congress, as burdensome environmental review processes can significantly delay new projects and discourage investment. The EPA has the power to preempt harmful environmental policies at the state level, such as the California Air Resources Board’s emissions standards which have threatened both cars and locomotives. The Trump administration should be commended for already taking action to roll back the Biden administration’s electric vehicle mandates, including by ordering a rescission of Biden-era Corporate Average Fuel Economy standards. Lessening these regulatory burdens will reduce costs and protect consumer choice.
By keeping the focus on free-market principles and slashing overbearing regulations, the Trump administration can turn the United States into the gold standard for transportation once again.
Rowan Saydlowski is Federal Affairs Coordinator at Americans for Tax Reform.
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