Here's something you don't see every day: Pete Buttigieg and Donald Trump on the same side of an issue. The former Transportation Secretary under Joe Biden has thrown his support behind a rail safety bill that President Trump is backing, and he's not being shy about it.

On Thursday, Buttigieg took to X to call out what he described as the "railroad lobby" and "conservative Republicans" who have "stood in the way" of reforms aimed at reducing derailments. He shared an Axios report and made his position crystal clear.

"President Trump is absolutely correct to demand that Congress pass the Railway Safety Act," Buttigieg wrote. He added that the bill would take the improvements he "put into place as Secretary and make them permanent."

Buttigieg's post specifically referenced the 2023 East Palestine derailment, where 38 cars carrying hazardous materials derailed in Ohio, forcing evacuations. The train was operated by Norfolk Southern Corp. (NSC), which reached a $600 million settlement in 2024 over a class action lawsuit—without admitting fault.

"Democrats and Republicans should join @RepDeluzio and others who have been leading this bipartisan push to include strong rail safety reform in the transportation bill," Buttigieg said.

The Railway Safety Act has an interesting origin story. It was first introduced in the aftermath of the East Palestine incident by Senator John Fetterman (D-PA) and current Vice President JD Vance back in 2023. So this isn't a new idea—it's been simmering for years, and now it's getting top-level attention from both sides.

Union Pacific's Modernization Deal

While the political drama plays out, the rail industry is also making moves on the technology front. Union Pacific Corp. (UNP) and Westinghouse Air Brake Technologies Corp. (WAB) have signed a $1.2 billion agreement to modernize Union Pacific's AC4400 locomotives. Once the work is done, the fleet will include over 1,700 modernized locomotives, with deliveries starting in 2027.

And there's more innovation brewing. Los Angeles-based startup Parallel Systems, founded by former SpaceX engineer Matt Soule, is working on battery-electric autonomous freight trains. It's a reminder that the future of rail might look very different from today's diesel-powered workhorses.

For investors, these developments highlight a sector in transition—caught between safety mandates, infrastructure spending, and technological disruption. The Railway Safety Act could impose new costs on operators like Norfolk Southern, but it also signals a political consensus that rail safety is a priority. Meanwhile, modernization deals and startups suggest the industry is preparing for a cleaner, more automated future.