Kelly, Reschenthaler urge Secretary Buttigieg to prioritize freight rail semiconductor chip production

WASHINGTON, D.C. -- This week, U.S. Reps. Mike Kelly (R-PA) and Guy Reschenthaler (R-PA) led a letter to U.S. Transportation Secretary Pete Buttigieg urging the Biden administration to prioritize freight rail and transit semiconductor chips and related critical components as part of the solution to solve national logistics and supply disruptions.

You can read their letter HERE.

"Depending on the industry, it requires two to three years’ time; therefore, all future needs are compromised until new capacity is online or demand decreases," the Members wrote in the letter. "In the meantime, it is of the utmost importance that the freight rail and transit manufacturers receive chips for safety and mission-critical parts and components."

"The chip shortage and bottlenecked supply chain are two major drivers of inflation. Prioritizing chips for freight rail will lower costs for both retailers and consumers across the United States," Rep. Kelly said. "The rail industry in Western Pennsylvania has always been strong. I look forward to working with the administration on this issue so ensure it remains just as robust into the future."

“The U.S. freight rail industry is critical to moving everything from the food we eat to the energy products that power our homes,” said Rep. Reschenthaler. “As our nation continues to grapple with record high inflation and supply chain disruptions, we must support the American businesses and workers who can get our economy back on track. I will continue working to ensure our freight rail manufacturers have the tools they need to provide the goods American families rely on every day.”

BACKGROUND
Semiconductor chips, which are used in everything from automobiles to cell phones, are a critical part of freight railcars and the national supply chain. A persistent issue since 2019, the current chip shortage situation is not expected to improve until 2024.

Reps. Kelly and Reschenthaler note the importance of the rail industry receiving a higher allocation of chips to ensure goods movement, quicken the transition to zero-emission fleets, and protect the utilization of essential safety equipment or components – including but not limited to advanced braking systems, Positive Train Control systems, and onboard and wayside/roadside communications.

Freight train and rail producers in Rep. Kelly's 16th Congressional District include Wabtec, with plants in both Erie and Grove City.