The President’s proposed 2009 budget includes a cut in federal subsidies to Amtrak:
Taking Steps to Rationalize the Nation’s Intercity Passenger Rail System
- Curtails Federal subsidies. $800 million for Amtrak, which represents a significant but necessary cut to the railroad’s Federal subsidy.
- Requires that Amtrak control its operating losses and focus on services that offer the most promise.
- Reserves the bulk of funds for capital investment so improvements may continue along the heavily trafficked Northeast Corridor.
- Reflects that Amtrak has taken few steps to align its business with the traveling public’s demand for intercity rail service and that it consequently continues to hemorrhage taxpayer funds.
- Provides State matching grants. $100 million for State matching grants for intercity passenger rail capital projects to empower States, not Amtrak, to address their transportation goals and priorities.
Bush tried to cut Amtrak funding last year, too, but Congress gave Amtrak $1.3 billion instead. It’s likely that Amtrak will get even more money this year. The U.S. Senate passed S.294 on Oct. 30, 2007, which gives Amtrak nearly $2 billion per year over the next six years and finally abandons the unrealistic notion that Amtrak can ever be self-sufficient. The Boston Globe has a good overview of the bill. It still needs to pass the House and get Bush’s signature. Hopefully it will pass with a veto-proof majority.