Montana Attorney General Austin Knudsen has urged the federal Department of Justice to scrutinize a proposed $85 billion merger between Union Pacific and Norfolk Southern. Knudsen argues that the merger conflicts with President Trump’s economic policy. The merger aims to consolidate control over 50,000 miles of U.S. railroad track, surpassing BNSF Railway’s 32,000 miles.
“The transaction would facilitate unprecedented consolidation in the freight-rail industry, inflate transportation costs, and erode service quality in a manner fundamentally at odds with an America-First economy,” Knudsen’s letter reads.
BNSF dominates Montana’s railroads, with Union Pacific holding a small route through Monida Pass to Butte. This area is significant in the state’s railroad history as the first rail entry point in 1880. Knudsen’s coalition includes attorneys general from Iowa, Kansas, Mississippi, North Dakota, South Dakota, and Tennessee, though the letter does not specifically mention Montana.
Industrial groups like the American Chemistry Council and the National Grain and Feed Association oppose the merger. “American shippers currently have access to fair, competitive, and efficient rail and interline service,” Knudsen emphasizes, stating that the merger would undermine U.S. industrial policy and jobs.
‘Good rail competition’
Montana has long focused on rail competition, establishing a “Rail Service Competition Council” in 2005 to enhance competitive rail services. This council was dissolved in 2019, having operated with limited funding. “What they were looking at is, is a way to get good rail competition for the shippers, and that was their main purpose,” said Doug McBroom of MDT.
In 2014, a report indicated Montana’s high shipping rates were due to limited trade lanes and infrastructure. The council’s findings led to negotiations for an arbitration agreement involving BNSF, aiming to improve rail service for Montana’s grain producers. BNSF later reached similar agreements with other groups.
BNSF expanded further when it absorbed Montana Rail Link in a merger finalized in 2024, adding 900 miles to its control. Energy products, including coal, remain key freight items on Montana’s railways, often aligning BNSF with energy interests. During the 2025 legislative session, BNSF and other industrial stakeholders opposed a rail tax proposal for passenger rail enhancement.
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