Legislation that would modernize the Railroad Retirement Board and the railroad retirement system has been introduced in Congress.
Since 1935, the Railroad Retirement Board (RRB) has operated a district benefit system for rail workers. New legislation introduced recently would allow the RRB to better serve railroad workers by bringing the board’s administrative funding in line with the board’s self-sustaining financing and benefit structure. The 2026 Railroad Retirement Benefits Stabilization Act was introduced by U.S. Sens. Bill Cassidy, M.D. (R-LA), Bernie Sanders (I-VT), Jim Banks (R-IN), and Tim Kaine (D-VA).
Currently, railroad workers receive retirement and unemployment benefits funded through dedicated payroll taxes on workers and their employers. In 2001, Congress created the National Railroad Retirement Investment Trust that could invest railroad retirement assets in the markets on behalf of the RRB. During a 2026 Senate Health, Education, Labor and Pensions Committee hearing, officials said the Trust’s assets have continued to grow in surplus.
However, because of Congressional accounting rules, despite the self-sustaining system, the RRB’s administrative funding is classified differently than programs that receive funding through general revenue. Because of this, the RRB must compete annually for funding with other agencies and programs, despite having a separate funding source.
In response, legislation to correct those issues has been introduced in Congress. The bill balanced funding flexibility with guardrails and ensured the system has not only predictable spending levels but also solvency for the RRB system. The legislation also directs the modernization of the system’s information technology systems to better serve rail workers, and prevent outdated processing systems from resulting in a backlog of claims and workers waiting an average of 18 months for payment of some benefits.