STB UPDATE: Schultz, Not Yet Kloster

The Senate Commerce Committee will meet in executive session Wednesday, Nov. 19, to vote on whether to recommend for Senate confirmation numerous POTUS 47 nominees, including Republican Michelle A. Schultz, who is seeking a second five-year term on the STB. Although Republican nominee Richard Kloster is not on the list, sources tell Railway Age his omission is related to “paperwork delays outside of his control.”

Both faced a Commerce Committee qualifications hearing Nov. 6. While partisan politics was on display by Democrats, concerned that the Republican nominees are under White House pressure to vote in favor of a Union Pacific-Norfolk Southern merger (an application that has not been formally presented to the agency), there was no indication either’s nomination is in jeopardy before the Commerce Committee. Each insisted they are under no political pressure and would follow the facts and law on every case brought before the STB.

A vote by a Commerce Committee majority to “recommend,” advances the nominee’s name to Senate Majority Leader John Thune (R-S.Dak.), who determines if and when to present the nomination for a Senate floor vote—the final step toward confirmation.

Neither Schultz nor Kloster are nominated to the seat occupied byDemocrat Robert E. Primus prior to his firing in August by POTUS 47. Primus is challenging in federal district court his firing, terming it “illegal”—contending the STB is a regulatory agency independent of the Executive Branch, that his Senate-confirmed term does not expire until Dec. 31, 2027, and the STB statute limits removal to a showing of inefficiency, neglect of duty, or malfeasance in office, none of which is alleged.

A similar firing by POTUS 47 of a Federal Trade Commission (FTC) Democrat—Rebecca Slaughter—has reached the Supreme Court on appeal after a federal appellate court found her ouster illegal, as it was not for “cause.” The Supreme Court issued a stay of the lower court’s decision, keeping Slaughter off the FTC pending resolution of the case. Oral argument in that case is scheduled for Dec. 7. A SCOTUS decision—timing unknown—may determine Primus’ fate.

Although Schultz’s first term expires Jan. 1, 2026, the STB statute allows members to remain for 12 additional months pending reconfirmation to a second term or Senate confirmation of a successor. If confirmed, Schultz’s second and final (by statute) term would run through 2030. Kloster’s term, if he is confirmed, will run only through Dec. 31, 2028, as he was nominated to complete an unexpired term of former STB Democratic member Martin J. Oberman, who retired in 2024.

Also serving on the five-member STB are Republican Chairperson Patrick J. Fuchs, whose second term expires Jan. 14, 2029; and Democrat Karen J. Hedlund, whose first term expires this Dec. 31. While Hedlund has not been nominated for a second term, neither has POTUS 47 indicated he will nominate a successor.