Railroad unemployment and sickness benefits will be fully restored for the more than 200,000 railroad workers and their families as the Railroad Employee Equity and Fairness (REEF) Act heads to President Biden’s desk for signature. Included in the National Defense Authorization Act (NDAA), this important legislation will finally remove these benefits from budget sequestration and restore nearly $100 in monthly benefits to railroad employees.

Unlike other unemployment insurance benefits, Railroad Unemployment Insurance is fully funded through payroll taxes and surcharges paid exclusively by the railroads and automatically adjusted to meet demand, ensuring the funds remain solvent. As a result, sequestration cuts to railroad unemployment benefits have never reduced the federal deficit because no taxpayer money funds the program. Railroaders and their families rely on these benefits to see them through tough times. Without the REEF Act, they would have faced additional annual cuts to unemployment insurance and supplemental sickness benefits through at least 2030.

Thanks to a bipartisan, bicameral effort led by U.S. Senator Deb Fischer (R-Neb.), Rep. Jan Schakowsky (D-IL), and others, railroad workers and their families finally have access to their full, earned benefits. Through their hard work and dedication, thousands of railroad workers will no longer have their benefits cut, and their families will know that these benefits will be there when they need them most.

“Passing the REEF Act is a big win for railroaders around the country and their families,” said AAR President and CEO Ian Jefferies. “Our employees deserve the certainty that their families will have the funds they need in the future, which is why we were in lockstep with our labor partners to eliminate these harmful, arbitrary cuts and provide the stability and equity our workforce needs. Thank you to Senator Fischer and Rep. Schakowsky for their support and work to get this important bill over the finish line.”

Greg Regan, president of the Transportation Trades Department, AFL-CIO (TTD), added, “As America’s largest transportation labor federation, we’ve seen firsthand how unemployment and sickness benefits are a lifeline for workers in times of need. After more than a decade of waiting, passenger and freight rail workers will finally receive the full value of the benefits they have earned. We applaud Senator Fischer, Representative Schakowsky, and our congressional partners who got this bill across the finish line.”

“Amtrak applauds recent congressional support for the REEF Act. This important legislation helps ensure that Amtrak employees will receive the unemployment and sickness benefits that they earned and deserve. It is a good day for railroad employees and their families who work so hard for America, and we thank Congress for providing this critical assistance,” said Amtrak CEO Stephen Gardner.

“The REEF Act is a win for the railroad industry’s workforce, and we were happy to work with both industry and labor partners on it. The law will correct an unintended consequence of Congressional budgetary management, ensuring that railroad employees can continue to focus on providing excellent service, safely and efficiently, without worrying that unemployment and sickness safety nets may be cut unfairly,” said Chuck Baker, president of the American Short Line and Regional Railroad Association (ASLRRA), representing the nation’s 603 short line railroads and their suppliers.

The passage of the REEF Act marks a significant victory for railroad workers and their families, ensuring that they will no longer bear the burden of unjust sequestration cuts. With strong bipartisan support, this legislation restores fairness to the unemployment insurance system, providing stability and security for those who have long been essential to the nation’s economy. The rail industry remains committed to supporting its workforce and continuing efforts to address the ongoing challenges faced by railroaders.