Controversies

Union Pacific agrees to reimburse Tempe over train derailment

Settlement

In 2022, the Tempe city council approved an agreement under which Union Pacific Corporation would reimburse the city for costs related to a 2020 train derailment. Under the agreement, Union Pacific was to pay $481,715 to cover property repairs, incident response, traffic control, environmental testing and other costs incurred by the city as a result of the derailment. The payment was structured as reimbursement for the city's expenses rather than as a penalty or admission of liability. The agreement resolved the city's claims concerning the derailment's financial impact on Tempe.

An agreement approved by the Tempe city council provides for Union Pacific to pay $481,715 to reimburse the city for property repairs, incident response, traffic control, environmental testing and other costs arising from the 2020 train derailment.

Stated objective. Cover costs including repairs to damaged city property, incident response, traffic control and environmental testing.

Crédit Mobilier scandal

The original Union Pacific became associated with Crédit Mobilier of America, a construction and financing arrangement accused of inflating railroad construction costs and diverting money to company insiders and political associates. The scandal became public in 1872 and contributed to reputational damage and later financial difficulties.