rail

STB Publishes 2025 Railroad Revenue Deflator Factors

The Surface Transportation Board has released inflation-adjusted revenue thresholds for railroads in 2025, using Producer Price Index data for line-haul operations compiled by the Bureau of Labor Statistics. The annual deflator factors measure revenue against established classification benchmarks and take effect January 1, 2025. The thresholds determine whether carriers qualify as Class I, Class II, or smaller operators for regulatory purposes. Class I railroads must generate at least $900 million in annual revenue under 2019 dollars, a standard effective since January 1, 2020. Class II carriers face a $40.4 million threshold in comparable dollars. The deflator methodology allows the STB to compare revenues across different years on a standardized basis, accounting for inflation fluctuations in transportation costs.