Congressional Schedule

Congress returned to Washington on January 3rd to officially commence the 119th Congress. Following the national elections in November, the 118th Congress held a “lame duck” session to deal mainly with appropriations for fiscal year 2025, which commenced October 1st. The federal government had been operating under a Continuing Resolution and negotiations for another extension went right up to the deadline of December 20th when the previously-enacted Continuing Resolution was set to expire.

Congress passed a new CR lasting until March 14, 2025, after failing to pass several different earlier versions. Once that bill was passed, both houses concluded the 118th Congress. Congress officially convened the 119th Congress on January 3rd and immediately held an election for Speaker after which all House members were all officially sworn in. On Monday, January 6th, the results of the Presidential election were certified by both houses of Congress. Both houses of Congress plan to be in session the entire month of January.

Republicans Maintain Majority in the House

The election tally was finally completed in December and Republicans maintained a narrow majority in the House by one of the smallest margins in history. They will have a 220 – 215 margin in the House, with only two votes to spare. Currently there are only 219 Republicans seated, with the seat previously held by Matt Gaetz (R-FL) vacant until it is filled in the Spring by a special election.

In the Senate, Republicans have a majority of a 53-47 margin. The Senate Republicans on November 13th selected the new majority leader, Senator John Thune (R-SD). Thune will now set the agenda for the new incoming Republican majority. He will have to work very closely with President Trump on the policy agenda and the confirmation process for all the new incoming appointees requiring Senate confirmation.

Congress Passes New Continuing Resolution

Congress passed and the President signed into law another stopgap continuing resolution that will continue federal funding through March 14th. As has become the pattern, the process of getting to a final resolution was anything but smooth.

On the final day of the previous CR, Friday, December 20th, the House of Representatives passed the third version of a proposed continuing appropriation for FY 2025 (the fiscal year had commenced October 1st). The bill passed by a wide bipartisan margin. The Senate passed the bill shortly afterwards and President Biden signed it into law.

Transportation funding was somewhat at the forefront of the CR with $8 billion allocated for emergency relief under the Federal Highway Administration for damages sustained from the recent hurricanes in Florida, North Carolina and Tennessee. Most notably, the bill also included a provision setting the federal share of the Francis Scott Key Bridge in Baltimore reconstruction to 100 percent. Otherwise, all transportation funding was continued at FY 24 levels.

Speaker Mike Johnson sustained some bruises during the whole exercise. He had negotiated the first version of the CR with Democrats, only to have a sizeable portion of his caucus object to the deal. After Johnson had to withdraw that deal, Democrats walked away and basically refused to negotiate with him again, believing he had not negotiated in good faith. Republicans began talking of removing Johnson from his Speakership role. He did finally succeed in putting together a bill that would garner enough Republican support to pass.

Johnson survived the dispute and was ultimately elected Speaker on the first ballot by the narrowest of margins. When the new 119th Congress convened Friday January 3rd, the first order of business was to elect a new Speaker – even before members are sworn in. This scenario harkened back to January 2023, when Republicans fought internally for five days and fifteen ballots before finally electing Kevin McCarthy as Speaker. This time, after appearing to not have sufficient support, Johnson was elected Speaker with 218 votes – the minimum required.

Debt Ceiling and Reconciliation to Achieve Cuts in Spending

One of the issues that derailed efforts to conclude the CR had to do with the debt ceiling. President-elect Trump had pushed to include in the CR an increase of the public debt ceiling, which is currently $36 trillion. Trump sought an increase of $1.5 trillion which likely would not have been sufficient to cover expected expenditures through the current fiscal year, even with potential cuts that may be proposed by the new incoming Trump Administration.

The debt ceiling issue will have to be addressed, and President Trump will face significant hurdles with a contingent of Republicans opposed to increasing the debt ceiling. These members are arguing for significant spending reductions immediately.

The incoming Trump team has targeted $2.5 trillion in mandatory spending cuts, without announcing exactly where those specific cuts would come from. These cuts would almost certainly have to be done through the Budget Reconciliation process that we expect to see used by the Republican-controlled Congress. And we may see that process used twice; it is so far unclear how Reconciliation will proceed as some Republicans are arguing for one large package that would include tax cuts as well as a host of other priorities including border control funding, energy policies and increased defense funding.

There is another contingent of Republicans, including new Senate majority leader Senator John Thune, who prefer to have two reconciliation efforts, with the first for border and defense related matters -- and the second later this year under FY 2026 to provide an extension of the Trump tax cuts, which are set to expire at the conclusion of this fiscal year. Thune argues that it would be more productive to quickly (by approximately April 1st) execute a reconciliation bill for border control, energy and defense spending, thus showing an early victory. He proposes that Congress would then move to a second reconciliation bill in the spring to begin tackling the tax issue, with an expected conclusion by September.

Budget reconciliation allows for a simple majority to be enacted in the Senate and cannot be filibustered. Democrats likely will be opposed to one or both reconciliation packages offered by Republicans.

Achieving cuts in mandatory spending is quite challenging because one of the largest aspects of mandatory spending – Social Security – cannot be cut in reconciliation. And most notably, Social Security and interest on the national debt account for more than half of all mandatory spending. This is the challenge that President Trump’s team faces in trying to make real, recognizable cuts in spending.

In terms of what transportation programs that are considered as mandatory, very few are eligible to be cut. According to the Eno Foundation, the only eligible expenses that could be reduced are: Coast Guard pensions, TSA capital spending and only $739 million of annual highway funding, plus any unobligated funds authorized under the Inflation Reduction Act.

President-elect Trump Nominates Sean Duffy as Transportation Secretary

President-elect Trump nominated former Wisconsin Congressman Sean Duffy to be the next Secretary of Transportation. It appears likely that he will be confirmed when the next Congress begins work in January; no opposition to his confirmation has emerged. While his hearing date has not yet been announced, it is anticipated that the Senate Committee on Commerce, Science and Transportation will have him appear in January. Media reports are circulating indicating a January 15th hearing, but that has not been confirmed. A confirmation vote in the Senate is expected shortly after the hearing.

Duffy, a former Congressman from the 7th District of Wisconsin (northern portion of the state – mostly rural), does not have specific transportation experience, which by no means is disqualifying, as numerous previous transportation secretaries had no prior transportation industry experience, including the current Secretary, Pete Buttigieg. Duffy sat on the Financial Services Committee while a member in the House, so he did not have much experience with transportation issues.

Duffy gained notoriety for flipping a seat in the 2010 election held by long-time Democrat Appropriations Committee Chairman David Obey, who had elected to retire that year. He served for eight years before retiring to help care for a special needs daughter who was born shortly after he left Congress. This child was his ninth child.

Duffy has not commented since his nomination since being named. He will likely not express policy positions while his nomination is pending.

President-elect Trump Nominates Steven Bradbury as Deputy Secretary

President-elect Trump announced on January 10th that his nominee for Deputy Secretary of the Department of Transportation will be Steven Bradbury. Bradbury served in the first Trump Administration as General Counsel of DoT. He also briefly served as Acting Deputy Secretary of Transportation, following Jeff Rosen’s departure to become Deputy Attorney General. Bradbury later was named Acting Secretary of Transportation, following Elaine Chao’s resignation on January 7th.

During the administration of George W. Bush, he was Principal Deputy and Acting Assistant Attorney General for the Office of Legal Counsel at the Justice Department.

Bradbury clerked for Supreme Court Justice Clarence Thomas and has been a Partner at the law firm, Kirkland and Ellis. He is expected to be confirmed by the Senate.

Trump Nominates FRA Administrator

President-elect Trump announced on December 21st that his nominee for Administrator of the Federal Railroad Administration will be David Fink, a railroad executive of the former Guilford Transportation Systems.

Fink served as President of Guilford beginning in 2006, taking over for his father who had formed Guilford from the old Maine Central Railroad and the Boston and Maine Railroad in the early 1980s. Guilford later changed its name to Pan Am, having purchased the name from the defunct airline. Pan Am was ultimately sold to CSX in 2022.

Sam Graves to Continue as Chair of House Transportation and Infrastructure Committee

In an unusual move, House Republican leadership selected Sam Graves (R-MO) to continue to serve one more two-year term for the 119th Congress as Chair of the House Committee on Transportation and Infrastructure. Under current rules, Graves would have rotated off the Chairmanship at the end of the 118th Congress. He had served as ranking minority member for four years and as Chair the two years of the 118th Congress. Current Republican rules in the House limit terms to no more than six years total as Ranking Member and/or Chair of a committee.

The vote by Republicans in the House followed a vote to waive the six-year term limit by the Steering Committee and leadership. Congressman Rick Crawford (R-AR), Chair of the Highways and Transit Subcommittee, had pursued the full committee chairmanship but backed out just prior to the vote by the Republicans to confirm the recommendation of the Steering Committee. He will likely be back in the race for Chair/Ranking Member at the end of the 119th Congress.

Shuffling of Chairmanships Will Likely Lead to New Chair of Senate THUD

With the decision by former Republican Leader, Senator Mitch McConnell’s (R-KY), to step down, it has set off a round of shuffling Chairs. With McConnell choosing the Subcommittee on Defense on the Appropriations Committee, that has forced the new incoming Chair of the full committee, Susan Collins (R-ME), to move to another subcommittee; she would have otherwise chosen Defense. She has a choice and would likely choose between Chair of the Labor-HHS-Education Subcommittee or Transportation-Housing.

If Collins elects Labor-HHS, a subcommittee that would have otherwise been chaired by Senator Shelley Moore Capito (R-WV), who is currently the Ranking Member of that subcommittee, Capito would likely move to Chair the Transportation-HUD subcommittee, which will push Cindy Hyde-Smith (R-MS) who has been serving as Ranking Member to find another subcommittee.

If Capito elects THUD, she would be in a unique position where she will Chair two transportation committees controlling the Federal Highway Administration. With the Republicans taking control of the Senate, she will definitely assume the Chair of the Senate Committee on Environment and Public Works, which will in the 119th Congress be writing the significant Highway title of the reauthorization and if she moves over to the Chair the Senate Committee on Appropriations, Subcommittee on Transportation – HUD, which makes the appropriations, she would then oversee the implementation of the new authorization bill that she will help write.

With highway issues being a major priority for the State of West Virginia, she will have a significant opportunity to affect the outcome of this key legislation.

Committees of Jurisdiction Selections Completed

The other key committees of jurisdiction for transportation were also finalized. Senate Committee on Commerce, Science, and Transportation will have a 15 to 13 ratio of Republicans to Democrats, with a number of new members. The committee will be Chaired by Senator Ted Cruz (R-TX), and the Ranking Member will be former Chair Senator Maria Cantwell (D-WA). Senators Jon Tester (D-MT) and Kyrsten Sinema (I-AZ) were not re-elected, and Senators Warnock and Welch had to give up their seats on the Commerce Committee to accept appointments to the Senate Finance Committee. So, Commerce was left with three vacancies that will be filled by Senators Jon Fetterman (D-PA) and newly-elected Senators Andy Kim (D-NJ) and Lisa Blunt Rochester (D-DE).

Democrats also had three vacancies to fill at the Environment and Public Works Committee, which funds the highway program and sets policy for both highways and the Corps of Engineers water resources program. Senators Adam Schiff (D-CA), Lisa Blunt Rochester (D-DE), and Angela Alsobrooks (D-MD) were assigned those seats.

On the Senate Committee on Banking, Housing, and Urban Affairs, Republicans will have a two-seat margin, 13 to 11. The former Chair, Senator Sherrod Brown (D-OH) lost his bid for a fourth term and will be replaced by Senator Tim Scott (R-SC). The new Ranking Member will be Senator Jack Reed (D-RI). There was a total of four Democrats who will not return to the committee and have been replaced by: Kim (NJ), Blunt Rochester, (DE) Alsobrooks (MD), and Ruben Gallego (D-AZ).

Amtrak Board Appointments Confirmed

The Senate also cleared the deck of several pending Amtrak Board appointments that had been reported out of the Commerce, Science, and Transportation Committee in 2024. Now, seven Board members will have their terms expire in 2029. There is one vacancy that will be nominated by President Trump.

The Amtrak Board will now be made up of:

1. Sean Duffy, Ex Officio as Secretary of Transportation (likely to be served by David Fink of FRA)

2. Stephen Gardner, Ex Officio – Amtrak CEO (non-voting)

3. Anthony Coscia

4. Christopher Koos

5. Joel Szabat

6. Lanheen Chen

7. Ron Batory

8. David Capozzi

9. Vacant – (Albert DiClemente was a hold over who is no longer serving)

What Issues Can Be Addressed in Budget Reconciliation

It is almost certain now that the new incoming Republican-controlled Congress will undertake a special legislative process known as “budget reconciliation” to advance proposed fiscal spending issues. Reconciliation was created by the Congressional Budget Act of 1974, and allows for expedited consideration of certain tax, spending, and debt limit legislation. Most notably, and the main reason why it is an attractive method, in the Senate reconciliation bills are not subject to filibuster and amendments are limited. Thus, it has been a successful process used often since enactment -- especially for tax legislation.

The scope of what can be included in reconciliation is limited however. The Congressional Budget Act permits reconciliation for legislation affecting spending, revenues, and the federal debt limit. There is the expectation that Republicans will certainly use reconciliation to reduce spending in many areas and to address the expiring 2017 “Trump Tax Cuts.” Limitations under reconciliation include for example, reconciliation cannot be used to cut social security programs.

The budget reconciliation process will commence first with a budget resolution – which is basically a broad outline of the revenues and expenses. The committees of jurisdiction will have to report out their respective provisions of the bill that will fill in the details. For example, the House Committee on Transportation and Infrastructure will report the allocation of monies to all the various transportation programs.

As mentioned earlier, there is still strong debate within Republican circles as to how to proceed. President-elect Trump appears committed to the idea of rolling up all priorities into one big “beautiful bill.” Those who favor undertaking two reconciliation processes foresee the first to address mainly border security, energy and defense issues, as well as repeal, or partial repeal of the Inflation Reduction Act. The second would be used later in 2025 to extend the Trump tax cut provisions that will expire at the end of 2025, as well as other program strategies. A second separate reconciliation process would allow more time for priorities identified by the Department of Government Efficiency (DoGE), which is being led by Elon Musk and Vivek Ramaswamy.

Potential cuts, recissions and reallocation of funds for transportation programs are expected during the budget reconciliation process. This effort will feed into the reauthorization of the surface transportation programs that will be finalized by the end of fiscal year 2026 (September 30, 2026).

CRC Legislative Priorities in 2025

FY 2025 Appropriations – While the FTA formula programs appear to be safe from any potential cuts, the discretionary programs at DoT and FTA could be reduced in the FY 25 appropriations bill and potentially during the budget reconciliation process.

The Commuter Rail Coalition will communicate priorities in the appropriations bill – namely that formula funds be maintained at the levels authorized under the infrastructure bill. We will also be working on the FY 2026 appropriations cycle, which will be getting underway at the same time.

Excess Liability Insurance - The Commuter Rail Coalition has been working for several months to seek language in a legislative vehicle. We are currently pursuing language in a likely omnibus appropriations bill in March that would provide a longer period to implement a new federal cap on liability for passenger rail. This provision is necessary prior to the upcoming revision of the cap, that is currently scheduled to take place in late 2025, with an effective date in the first quarter of 2026.

The federal cap on liability for passenger rail claims is adjusted every five years as mandated under federal statute. Current statute mandates the newly adjusted cap be implemented within 30-days. If the 30-day effective date is left unchanged, there will likely be problems encountered across the entire industry. Having 30+ agencies simultaneously seeking tens of millions of dollars in additional coverages could be more than the current insurers can digest.

Railway Safety Act – It is unlikely the bill may be resurrected in the House in 2025. Chairman Graves of the House Committee on Transportation and Infrastructure has stated he sees no need for any legislation and Senate Commerce Committee Chairman Ted Cruz also does not seem inclined to move a bill.

CRC will continue to monitor.

Surface Transportation Reauthorization – The Infrastructure and Investment Jobs Act will expire at the end of the 2026 fiscal year. Congress plans to begin the reauthorization process in 2025 with plans to have working legislative drafts later this year or early in 2026. CRC will be working closely with committee staff and members to communicate several policy priorities and programmatic goals.

One such goal will be the establishment of an infrastructure and rolling stock replacement program for commuter rail agencies only administered by FTA. The program would be similar to the current CRISI program administered by FRA.

Congressional Communications – CRC is maintaining ongoing communications with DoT, FTA, FRA and members and staff of critical committees of jurisdiction. CRC members play a critical role of supporting these efforts with their congressional delegations.

We plan to initiate communications with the new Trump Administration appointees once they are in place.

John Cline
CRC Director of Government Affairs
Cline Strategic Consulting, LLC
M: 202-550-6555