STB Board member Primus is dismissed by President Trump

President Trump this week terminated Robert Primus from his position as Board Member of the Washington, D.C.-based Surface Transportation Board (STB), an independent adjudicatory and economic-regulatory agency charged by Congress with resolving railroad rate and service disputes and reviewing proposed railroad mergers, according to a Wall Street Journal report.

The report stated that Primus, a Democrat was nominated by President Trump to the STB in 2020 and began in his role in 2021. Primus was subsequently designated as STB Chairman 2024 by former President Joe Biden on May 11, 2024, and, at the time of his dismissal this week, was serving his second term, following his nomination by President Biden on June 22, 2022, and his confirmation by the U.S. Senate on December 20, 2022.  His current term as an STB Board member was set to expire on December 31, 2027. In January, President Trump appointed Republican Board Member Partrick Fuchs as STB Chairman.

The STB’s Board current makeup is now comprised of three members, with two Republicans—Chairman Fuchs, whose term expires in 2029, and Michele Schultz, whose term expires in January 2026—one Democrat, Karen Hedlund, whose term expires at the end of this year—and two open seats.

The WSJ report cited the White House as saying “Robert Primus did not align with the President’s America First agenda,” adding that “the Administration intends to nominate new, more qualified members to the Surface Transportation Board in short order.”

In a LinkedIn post, Primus called his termination deeply troubling and legally invalid, noting that it comes at a time when the Board is considering significant pressing matters of critical importance to both the national freight rail network and supply chain that would directly affect large swaths of U.S. manufacturing, agricultural, industrial and energy sectors.

“As someone who was nominated by President Trump during his first term and unanimously confirmed by a Republican-led Senate, then renominated by President Biden and unanimously confirmed by a Democrat-led Senate, I have worked tirelessly to build bipartisan trust and have demonstrated myself to be truly an independent Board member that has consistently rendered fair and impartial decisions,” said Primus. “My record during my four and a half years at the Board reflects this and I strongly believe the actions of the White House would weaken the Board and adversely affect the freight rail network in a way that may ultimately hurt consumers and the economy. With all of this in mind, I plan to continue to discharge my duties as a member of the Board and, if I’m prevented from doing so, I will explore my legal options.”

This development is especially notable in light of the recent late-July proposed $85 billion Union Pacific and Norfolk Southern merger, which is not expected to be completed for several months and requires regulatory approval. What’s more, this represents the first Class I railroad merger since the April 2023 deal, in which Canadian Pacific acquired Kansas City Southern for $31 billion, in which Primus was the lone STB Board member to oppose the deal, saying the deal was not in the public interest.

“We believe Trump's attempt to displace Primus is perhaps the clearest indication yet of his openness to rail consolidation and the proposed merger,” wrote Moore.

Baird Equity Research analyst Daniel Moore wrote in a research note that Union Pacific’s proposed merger with Norfolk Southern aligns with the White House’s efforts to enhance and strengthen U.S. industrial competitiveness.

“Before this firing, we expected the one vacancy to be filled by an appointment in 2026,” wrote Moore. “However, this means that, for the time being the board will have only three members: two Republicans and one Democrat (effectively two vacancies if the action is ruled valid). Importantly, the board only needs three members to have a quorum. However, the STB is a regulatory board where the law requires partisan balance, meaning no more than three of the five STB members can be from the same political party. Given the move, it is possible that Trump sees an appointment as no longer necessary, given Republicans' current majority.”

TD Cowen analyst Jason Seidl noted that this move serves as a sign that President Trump has entered the rail M&A arena and has “shown his cards on a potential transcon in favor of a merger,” adding that the STB may now be under scrutiny.

“The rail industry has long benefited from an independent STB that may now be under scrutiny of the Administration,” wrote Seidl. “This announcement may hinder the Board's ability to focus on its core duties at a very busy time ahead of a major proposed transcon merger. We worry political pressure could hinder the Board in fact-focused due diligence and may limit outspoken opposition in an effort to avoid confrontation with the President. No statement has yet been made by Chairman Fuchs. Our understanding is that the STB is an independent agency, though it is unclear if the President has the authority to fire Primus, considering no cause was listed in his termination email, per the WSJ.”

Regarding the Union Pacific-Norfolk Southern merger, Seidl stated that with a 2-1 STB Board Republican majority, the Board can have no more than three people from the same party, with President Trump able to stack the board further.