FRA civil penalties process brings $15.4M from Class I railroads

The FRA civil penalties process has generated $15.4 million in civil penalties from Class I railroads, as reported by Trains.com. The Federal Railroad Administration says the money was collected under a more streamlined approach to settlement negotiations.

This is reported by the railway transport news portal Railway Supply.

Under the agency’s streamlined settlement negotiation process, officials say they are prioritizing discussions around the most significant cases while keeping railroad safety data collection moving forward.

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The basic outline is described in an FRA newsroom release. When inspections turn up issues — including problems such as defective wheels — Class I railroads and Amtrak may receive a civil penalty. The FRA adds that penalties can be reduced if repairs are made and steps are taken to prevent repeat problems.

In a press release, FRA Administrator David Fink said the approach is already producing results, with carriers being pressed to address noncompliance quickly and improve safety. He also pointed to the work of FRA safety inspectors alongside the railroad workforce in the field.

FRA civil penalties process: when penalties apply and how cases settle

The FRA says civil penalties are reserved for what it calls severe instances of noncompliance and are based on guidelines in the Code of Federal Regulations; Railway Age also summarizes the agency’s description of how the settlement approach is intended to avoid protracted litigation. The agency adds that it can settle claims by weighing a range of mitigating factors, and says negotiated resolutions allow information about safety improvements to be exchanged while claims are handled without prolonged court battles.

The $15.4 million in penalties were collected after Class I railroads reported more than $95 billion in revenue in 2024, the most recent year for which revenue figures are available.

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