| | | | |  | | By Chris Marquette and Oriana Pawlyk | | | — Boeing will be charged by the Justice Department in relation to the two 737 Max 8 crashes that killed 346 people in 2018 and 2019, unless they take a plea deal. — After NTSB's East Palestine report last week, the House is scheduling a rail safety hearing for July 23. — President Joe Biden is asking for $4 billion for the Baltimore bridge rebuild and other disasters. IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Chris at cmarquette@politico.com and Oriana at opawlyk@politico.com and follow us at, @oriana0214 and @ChrisMarquette_. “I would always pack my bags and go/ Before they could find me out/ I would always hit the road/ Before they could pin me down.” Programming note: We’ll be off this Thursday and Friday for the Fourth of July but will be back in your inboxes on Monday.
| | | | Understand 2024’s big impacts with Pro’s extensive Campaign Races Dashboard, exclusive insights, and key coverage of federal- and state-level debates. Focus on policy. Learn more. | | | | | | | | | DOJ BRINGING CRIMINAL CHARGES AGAINST BOEING: After weeks of deliberating, DOJ is planning to slap Boeing with criminal charges for allegedly violating the terms of a deferred prosecution agreement related to the 2018 and 2019 737 MAX crashes in Indonesia and Ethiopia. Boeing has a week to take the plea deal DOJ has cooked up or face a trial, according to two people on a call with DOJ on Sunday evening where the deal was discussed. Boeing had no comment Sunday evening when the news broke and DOJ couldn't be reached for comment. Oriana has more. THE LATEST RAP IN THE BAD NEWS DRUMBEAT: Whether Boeing agrees to a guilty plea deal or decides to face a trial, it's not a great look for one of the United States' premier manufacturers, which is again under a microscope following a midair incident earlier this year where a door plug blew off. Since then Boeing has faced a new raft of investigations and regulatory scrutiny and accusations that the company has become so blinded to profits that it's lost its way — along with a sea of bad press. COWARDS: An attorney for family members of some of those lost in the crash in Ethiopia suggested DOJ's decision was cowardly. Robert Clifford, senior partner at the Clifford Law Firm, accused DOJ of giving Boeing a “sweetheart deal” and said the agency is “afraid to prosecute a company that they believe is too big to fail.”
| | BOEING X SPIRIT DEAL OVER $4 BILLION: Boeing will acquire Spirit Aerosystems—the company that supplied the Alaska Airlines door plug that blew out mid flight in January—in an all stock deal valued at $4.7 billion, according to Reuters. The move to reacquire Spirit Aero, which was spun off of Boeing in 2005, is the culmination of a decision that kicked off after the door plug incident with the goal of refocusing on safety and quality. The deal, which would mean Spirit would be broken apart, with some assets sent to Airbus, is pending approval from regulators.
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| | RAIL SAFETY HEARING ON EAST PALESTINE SET: The House Transportation subcommittee responsible for railroads and hazardous materials will meet July 23 to grapple with how to respond to the 2023 East Palestine, Ohio, derailment. The announcement comes just days after the NTSB laid out its findings and recommendations, which members were briefed on separately Friday. — Rep. Troy Nehls (R-Texas), who leads the subcommittee, told Chris that he is considering introducing a rail safety bill ahead of the hearing that would phase out DOT-111 tank cars more quickly than the current deadline of 2029 — a move that was recommended by NTSB and DOT Secretary Pete Buttigieg. Why? Because one of those less resilient, older cars is what breached, leaked and then caught fire in East Palestine. BUT HOW MUCH FURTHER: Although there’s a hearing on the books, the likelihood of significant action on rail safety in Congress before the election isn't looking great. Bipartisan bills on rail safety are in limbo in both the House and Senate, and Transportation Committee Chair Sam Graves (R-Mo.) has said he’s not inclined to introduce a bill responding to East Palestine. Chris has the story.
| | BIDEN’S BIG BRIDGE ASK: On Friday, the White House officially requested $4 billion in emergency funding to rebuild the collapsed Francis Scott Key Bridge in Baltimore and address damage from natural disasters like tornadoes and wildfires around the country. Of that number, the supplemental requests $3.1 billion for DOT’s emergency relief program — a quick-release program that helps fund highway and bridge disaster needs, and one that DOT said needs billions of dollars more in funding to deal with the issues it's been made aware of. — The supplemental also includes a request for $79.5 million to help defray the Coast Guard's unplanned costs related to the Baltimore bridge collapse response and recovery operations. It requests $33 million for the Army Corps of Engineers to replenish funds depleted by their efforts to remove the wreckage in Baltimore Harbor. MOVE IT ALONG: The bridge collapse and disaster aid have bipartisan support. Without the extra money, White House officials caution that the bridge collapse recovery will drain DOT's emergency coffers, and FEMA’s disaster relief program could run out of money at the height of hurricane season later this summer. Caitlin Emma has more.
| | THE HIGH COURT HAS SPOKEN: The Supreme Court on Friday gutted a judicial doctrine that shielded federal regulations from legal challenges, shifting power from agencies to judges and providing a win for conservatives and business groups looking to limit the power of the president. The 6-3 decision will make it more difficult for President Joe Biden — and those who succeed him — to take action on a variety of policies, including efforts to clear student debt and regulate artificial intelligence. NOT ACTUALLY ABOUT CHEVRON: The decision kills off a Reagan-era doctrine called Chevron deference that, until now, mandated judges to defer to agencies' readings of "ambiguous" federal statutes — as long as those readings were "reasonable." Alex Guillen and Josh Gerstein have the story. SO HOW DOES THIS AFFECT TRANSPORTATION? One big target for a future battle is DOT’s “fare transparency” rule, which was unveiled this year. It's a controversial change requiring airlines and third-party bookers to disclose any add-on fees at the time someone buys a ticket — something the airline industry has fought for years and is already challenging in court. TAP THE BRAKES: The ruling could also mean that DOT tempers its attempts on broader, more sweeping regulatory efforts and instead focuses on technical fixes that would be more insulated from legal challenges, said Roger Nober, Director of the GW Regulatory Studies Center. Oriana and Chris break it down for you here.
| | DHS PASSES: The House GOP on Friday passed three spending measures, including the Department of Homeland Security bill, which calls for the TSA PreCheck fee program to increase to $452,000 in fiscal 2025. That's a $92,000 boost over the previous fiscal year. Jennifer Scholtes has the story.
| | COMPANIES WANT BIDEN TO RECONSIDER CHINA TARIFFS: Many companies are pressing Biden to change his plan to increase tariffs on semiconductors, syringes and other products from China, cautioning that there will be higher costs for businesses and consumers. “These tariffs will create unavoidable economic burdens on the U.S. industry and leave … manufacturers with domestic operations little time to actively prepare for the transition,” MEMA, The Vehicle Suppliers Association, said in comments filed this week with the Office of the U.S. Trade Representative. Doug Palmer has more here.
| | IN MEMORIAM: Rep. Thomas Massie (R-Ky.), a member of the House Transportation Committee, announced on Friday that his wife, Rhonda, died. “On behalf of the entire Committee, we offer our sincerest condolences and prayers of support to Congressman Massie, his children, and his entire family upon the sudden loss of his beloved wife Rhonda," Graves and Rep. Rick Larsen (D-Wash.), the panel's ranking member, said in a statement.
| | | | — “Why unsafe chemical tank cars remain on the rails after East Palestine." Washington Post. — “Baltimore’s revived Red Line will be a light-rail system, Moore says." Washington Post. — “It’s the Busiest Air-Travel Day Ever. That’s Happening a Lot Lately.” Wall Street Journal. — “Downtown Phoenix transit hub will be named after former Mayor Greg Stanton.” KJZZ Phoenix. — “Canada airline WestJet cancels more than 400 flights after a surprise strike by mechanics union." AP. On the Calendar Nothing on our radar! Know of an event we should have on our calendar? Let MT know at transpocalendar@politicopro.com. | | | | Follow us on Twitter | | | | Follow us | | | | |
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