Railroad Trade Group Sues New Jersey Over Safety Law

Lawsuit challenges state's 'severe restrictions' on rail operations.

Mar. 31, 2026 at 5:19pm

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A high-end studio still life photograph featuring a polished metal railroad spike, a pair of safety goggles, and a rolled blueprint, arranged elegantly on a clean, monochromatic background to symbolize the abstract concepts of rail safety regulations and the debate over state versus federal oversight.A lawsuit over New Jersey's new railroad safety law exposes the ongoing tension between state and federal authority over the industry.Trenton Today

The Association of American Railroads, a trade group representing the largest U.S. railroads, has filed a lawsuit against the state of New Jersey seeking to block a new law that imposes what it calls 'severe restrictions' and unconstitutionally intrudes on federal authority over railroad safety.

Why it matters

The lawsuit highlights the ongoing tension between state and federal oversight of the railroad industry, with the railroads arguing that New Jersey is overstepping its bounds by imposing additional safety regulations beyond what is required at the federal level.

The details

The lawsuit challenges five provisions of the new New Jersey law, including requirements for two-person train crews carrying hazardous materials, a state-run 'wayside detector' program to monitor equipment, and allowing labor representatives to inspect railroad property. The railroads argue these measures unconstitutionally interfere with federal authority over rail safety.

  • The new law was signed by former New Jersey Governor Phil Murphy shortly before he left office in January 2026.
  • The lawsuit was filed by the Association of American Railroads on March 30, 2026.

The players

Association of American Railroads

A trade group representing the largest Class I railroads in the United States, including BNSF, Canadian National, Canadian Pacific, CSX, Norfolk Southern, and Union Pacific.

Jennifer Davenport

The Attorney General of New Jersey, named as a defendant in the lawsuit.

Priya Jain

The New Jersey Transportation Commissioner, named as a defendant in the lawsuit.

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What they’re saying

“New Jersey is impermissibly attempting to assert its own regulatory authority over an area Congress has placed under exclusive federal control.”

— Association of American Railroads

What’s next

The lawsuit seeks an injunction to block the enforcement of the new New Jersey law. A federal judge will need to rule on the railroads' request for an injunction.

The takeaway

This case highlights the ongoing debate over the balance of state and federal authority when it comes to regulating the railroad industry, with the railroads arguing that New Jersey has overstepped its bounds by imposing additional safety rules beyond what is required at the national level.