This paper defines and studies permutation representations on the equivariant cohomology of Schubert varieties, as representations both over C and over C[t_1, t_2,...,t_n]. We show these group actions are the same as an action of simple transpositions studied geometrically by M. Brion, and give topological meaning to the divided difference operators studied by Berstein-Gelfand-Gelfand, Demazure, Kostant-Kumar, and others. We analyze these representations using the combinatorial approach to equivariant cohomology introduced by Goresky-Kottwitz-MacPherson. We find that each permutation representation on equivariant cohomology produces a representation on ordinary cohomology that is trivial, though the equivariant representation is not.