Nebraska railroaders rack up overtime but were left out of Big Beautiful Bill tax exemption

LINCOLN, Neb. (KLKN) — Railroad workers say they’re getting a raw deal from the One Big Beautiful Bill.

Last week, President Donald Trump’s spending package was signed into law, removing taxes on tips and overtime for many workers.

But the railroad industry was excluded.

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Nate Lee, a full-time employee of BNSF Railway in Lincoln, said he was stunned when he heard the news.

“It just feels like one of those things where the working class gets the crumbs,” he said. “I know there’s a lot of guys that feel shot in the back.”

Part of the reason this industry was left out was because it’s covered by the Railway Labor Act. It has its own procedures for collective bargaining agreements.

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The original version of the Big Beautiful Bill included railroaders in the overtime tax exclusion.

But that was removed from the final reconciliation bill that came out of the Senate.

Jakob Forsgren, vice chairman of the local chapter of the Brotherhood of Maintenance Way Employes, said union members reached out senators to strike up an amendment, but it wasn’t brought to the floor.

“Of the 45 amendments that were voted on, they wouldn’t bring ours on for a vote,” he said.

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More than 50% of transportation workers clock overtime each year, according to a QuickBooks analysis.

Forsgren said he received a call from a member who clocked 76 hours of overtime in a two-week pay period.

Nate Lee knows firsthand the work it sometimes takes.

“We’ve got a lot of guys that it’s sunup to sundown in some cases,” he said.

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In Nebraska, there are almost 27,000 retired or active railroad workers. And the state has over 3,000 miles worth of railroads.

Lee said the industry is a vital part of the state.

“We still have entire towns that are structured around railroad workers; that’s the industry there,” he said. “It definitely feels even when you can’t get help from your local level, you’re useful until you’re not.”

Forsgren says the union is going to try to work with lawmakers in Nebraska and in the nation’s capital in hopes of finding a solution.