WASHINGTON — The Federal Railroad Administration announced it has collected $15.4 million in civil penalties from Class I railroads under what it calls a new streamlined settlement negotiation process.
The process involves discussions on the most significant cases while continuing to collect data to improve railroad safety, the FRA says. Class I railroads and Amtrak may receive a civil penalty when inspectors identify issues such as defective wheels, with reductions in those penalties possible when repairs are made and steps are taken to prevent recurrences.
“Our new civil penalty process is already delivering results – forcing Class I railroads to step up, improve safety, and address immediately noncompliance,” FRA Administrator David Fink said in a press release. “I am grateful to our dedicated safety inspectors who are right there with the railroad workforce in the field.”
Civil penalties are reserved for what the FRA calls “severe instances of noncompliance,” and are based on guidelines in the Code of Federal Regulations. The FRA can settle such claims based on a variety of mitigating factors, and says the process enables the exchange of information about safety improvements and collection of claims without protracted litigation.
The $15.4 million in penalties came after Class I railroads reported more than $95 billion in revenue in 2024, the most recent year for which figures are available.
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