The Railroad Retirement Board (RRB) recently announced that the Senate Committee on Appropriations has approved a fiscal year (FY) 2025 funding level of $129 million. While RRB says it “appreciates the Committee’s mark, which is notably higher than the House’s proposed spending level, it should be noted that Congress cut the RRB’s budget for FY 2024, which has severely impacted agency operations,” the agency said.
With a $129 million budget, the RRB says it will be “forced to continue its existing hiring freeze and operational cutbacks, initiated as a result of the agency’s FY 2024 budget reduction, while continuing to lose decades of institutional knowledge through retirements.” Further, the RRB adds that it will be “unable to move forward with its multi-year Information Technology (IT) modernization project, resulting in continued dependence on antiquated systems and inefficient processes and a further deterioration of service to the nation’s railroaders.”
After several years of “inadequate flat funding,” in 2018, the RRB received funding targeted towards improvements to the agency’s IT systems. However, during that period, RRB says there were “no significant increases to the agency’s administrative budget.” The RRB did not receive a significant boost to its administrative budget until 2022, and even then the increase was “not sufficient to bring the agency back up to needed staffing levels,” RRB noted. “The insufficient funding levels over the last decade have led directly to unacceptable delays in service to the rail employees and annuitants who have paid into the railroad retirement system their entire careers,” the agency said.
At the same time the Senate Appropriations Committee approved a $129 million funding level for the RRB, it increased funding for the Social Security Administration (SSA) by $509 million to “help SSA address service delivery challenges and improve services for Americans across the country.” As noted by the Committee, “Americans rely on Social Security, have earned benefits through a lifetime of work, and deserve access to timely services.”
“Our nation’s railroaders also have earned their benefits through a lifetime of work and likewise deserve access to timely services,” RRB said. “Railroad employees and employers pay a combined 18% in payroll taxes for enhanced benefits, above and beyond what other American workers and employers pay for their benefits. These payroll taxes directly fund the RRB’s administrative budget.
“Railroad employees and their families deserve proper service during their more vulnerable years—especially since they have paid more for it. The RRB needs sufficient funding to increase staffing, continue to make needed IT improvements, keep field offices open to the public, and adequately execute its mission. Its constituents expect and deserve no less,” the agency concluded.
