The U.S. Supreme Court's decision to allow the president to fire members of the Federal Trade Commission without cause directly threatens the legal challenge of Robert E. Primus, the Democratic member of the Surface Transportation Board (STB) fired by President Trump in August 2025, and could accelerate major railroad merger reviews, according to FreightWaves.
Supreme Court Ruling on Presidential Removal Power
In a 6-3 decision in Trump v. Slaughter, the Supreme Court overturned the 1935 precedent set in Humphrey's Executor v. United States, which had protected leaders of independent agencies from removal except for "inefficiency, neglect of duty, or malfeasance in office." Chief Justice John Roberts wrote that the old framework "has not withstood the test of time," according to FreightWaves. The ruling now gives the president broader control over agencies like the FTC that exercise core executive powers—making rules with the force of law, investigating, and prosecuting.
Impact on Robert Primus and the Surface Transportation Board
Robert E. Primus served on the STB since 2021 and was its chairman for part of that time. The five-member board regulates the nation's freight railroads, approving mergers, setting rates, and resolving disputes between railroads and shippers. On August 27, 2025, the White House emailed Primus terminating his position because his views did not align with the administration's priorities, without claiming inefficiency or neglect, as reported by FreightWaves. The STB's governing law contains removal language nearly identical to the old FTC statute. Primus sued, arguing the firing was illegal. The Supreme Court's new reasoning, that agencies performing executive functions cannot be shielded from presidential removal, applies directly to the STB. Lower courts are expected to follow the precedent. Primus's lawyers argued the STB is different because it does less "executive" work, but the opinion leaves little room for that distinction, focusing on whether the agency exercises real power over the economy and private parties.
What This Means for the Freight Industry
The STB is currently short-handed and faces a huge proposed merger between Union Pacific and Norfolk Southern—the largest rail merger ever, according to FreightWaves. With Primus removed, President Trump can now appoint replacements more easily aligned with his policies. This change could speed up merger reviews or shift how the board weighs competition, service quality, and shipper protections.
- Railroads and shippers have long complained that the STB moves too slowly.
- Greater presidential control might make decisions faster, but it could also make them far more political.
- The ruling fits a broader pattern: Trump has removed or tried to remove members of several independent boards, including the FTC, NLRB, and others.
Operational Implications and Recommended Actions
For freight forwarders, logistics managers, and shippers, the decision signals potential near-term changes in rail regulation. The STB's composition will likely shift toward presidential appointees, which may prioritize administration goals. Shippers should monitor upcoming STB decisions on the Union Pacific-Norfolk Southern merger and prepare for a faster but more politicized review process. Logistics operators should adjust their rail contracting strategies, as rate-setting and dispute resolution could become less predictable.
Watch List
- Union Pacific-Norfolk Southern merger review: The largest rail merger ever will test the new STB dynamics.
- Presidential appointments: Who Trump nominates to fill STB vacancies will signal regulatory direction.
- Further court challenges: Primus's lawsuit will proceed in lower courts applying the new precedent.
- Congressional response: Lawmakers may seek legislation to restore independence to transportation regulators.
Sources:
