Norfolk Southern (NSC.N) said on Monday it launched an interim program to compensate homeowners around East Palestine, Ohio who sell their properties and experience a reduction in value following a Feb. 3 train derailment.
The program applies to parts of Ohio and Pennsylvania near the derailment site and applies to those with homes on the market, future listings or sold since Feb. 3. The railroad first announced plans in May to create the program.
themes: Pennsylvania Ohio
Biden issues executive order over Norfolk Southern Ohio train derailment
U.S. President Joe Biden on Wednesday issued an executive order the White House said aims to hold railroad operator Norfolk Southern ..... N) accountable over a freight train derailment in East Palestine, Ohio, earlier this year.
The order is meant "to ensure that Norfolk Southern continues to be held accountable for this disaster, to address any of the disaster's long-term effects, and to ensure federal assistance is available to affected communities should needs develop that are not met by Norfolk Southern," the White House said in a statement.
Norfolk Southern's Compensation Program Launched Following Ohio Derailment, Biden Takes Action
In a bid to hold Norfolk Southern accountable for the freight train derailment that occurred in East Palestine, Ohio earlier this year, President Joe Biden issued an executive order on Wednesday. The White House expressed its intention to ensure that Norfolk Southern takes responsibility for the disaster, addresses any long-term effects, and provides federal assistance to affected communities in case the company fails to meet their needs.
Norfolk Southern, a major railroad operator, responded to the situation on Monday by launching an interim program aimed at compensating homeowners in East Palestine, Ohio and parts of Pennsylvania who have experienced a reduction in the value of their properties due to the incident. The program specifically targets homeowners who have either sold their properties or have them listed for sale since February, when the derailment occurred.
The announcement of the compensation program came after Norfolk Southern initially revealed its plans to create such a program back in May. The company recognized the impact that the derailment had on the local housing market and took the initiative to provide financial support to affected homeowners in an effort to mitigate the damage caused.
With this compensation program, Norfolk Southern aims to alleviate the burden on homeowners who have suffered property devaluation as a result of the train derailment. By providing financial assistance, the company hopes to restore stability to the affected housing market and aid homeowners in their recovery process.
The executive order issued by President Biden acts as a check on Norfolk Southern, ensuring that the company fulfills its obligations to the affected communities. The White House's statement emphasizes the need for accountability and the availability of federal assistance should Norfolk Southern fail to adequately address the long-term effects of the disaster.
As investigations into the freight train derailment continue, the actions taken by both President Biden and Norfolk Southern demonstrate a commitment to holding the railroad operator accountable and providing support to the affected communities. The compensation program initiated by Norfolk Southern is a step towards rectifying the damage caused to homeowners, while the executive order issued by the President reinforces the importance of corporate responsibility in addressing such disasters.