Posts Tagged ‘Amtrak budget’

Amtrak Submits Wish List for FY2021 to Congress

February 23, 2020

Amtrak has submitted its wish list to Congress, which includes funding in fiscal year 2021 of $1.33 billion for the National Network and $714 million.

The passenger carrier also is seeking $300 million to develop new corridors and contains various capital requests to cover the costs of replacing diesel locomotives and rebuilding passenger cars used on long-distance trains.

The carrier said it is “on track to achieve operational breakeven in FY2020.”

What Amtrak is seeking is far below what the Trump administration has proposed that it receive.

The administration’s budget request for FY2021 seeks $936 million for Amtrak, which the carrier notes is a 53 percent cut in the $2 billion funding it received from Congress for FY2020.

Amtrak said it appreciated the Trump administration’s focus on expanding intercity rail passenger service to underserved cities and corridors, but the carrier said that if its funding falls to what has been proposed by the administration that would “have significant negative impacts on vital capital projects and initiatives across Amtrak’s network and put at jeopardy the Corporation’s continued strong financial and operating performance.”

The budget request contains $4.9 million for Amtrak’s share of the rebuilding of the track used in Kansas, Colorado and New Mexico by the Chicago-Los Angeles Southwest Chief.

The Rail Passengers Association said its review of the Amtrak’s budget request found that the carrier is seeking $2 billion toward replacement of Superliner and Amfleet II equipment, which is used most of the time for long-distance trains, and $1.5 billion for the replacement of locomotives used in the national network.

Amtrak is also seeking $510 million for equipment that would be used in new corridors.

Although the budget request does not name any specific new corridors that Amtrak wishes to develop, it gives some detail about how the carrier proposes to fund those services.

Amtrak would fund up to 100 percent of the initial capital costs to develop new corridor services.

Operating and ongoing capital costs would be funded on a sliding scale over the next five years ranging from 100 percent by Amtrak in the first two years to 50 percent in the fifth year.

State support would begin in the third year at 10 percent, increase to 20 percent in the fourth year and 50 percent in the fifth year.

The budget document said these shares are of fully-allocated operating losses and capital costs.

After the fifth year of operation the expenses of a corridor would become subject to the terms of Section 209 of the Passenger Rail Investment and Improvement Act which requires that routes of 750 miles or less must be state-supported routes.

As for when Amtrak will begin to identify the emerging corridors, the budget request said that process will begin within one year after the date of enactment of Amtrak’s reauthorization.

The FAST Act that authorizes Amtrak expires on Sept. 30. Although Congress may adopt a new surface transportation authorization law by that date, some observers have suggested lawmakers may extend the existing authorization via a continuing resolution as they continue to hammer out the contentious political issues surrounding a new transportation authorization law.

That means a new authorization could be pushed into 2021.

Amtrak said in its budget request that once it has been reauthorized, it will consult with state departments of transportation, local municipalities, host railroads, and other stakeholders.

Those conversations will lead to the development of plans that Amtrak will submit to the U.S. Department of Transportation as well as the House and Senate authorizing committees for high-potential corridors.

Amtrak said that at that time it will show proposed routes, schedules and frequency of service information. It will also provide estimates of ridership, revenue and capital investment requirements.

“Amtrak shall consider market conditions, stakeholder funding commitments, public subsidy per passenger, and host railroad cooperation when selecting routes,” it said.

It is noteworthy that the budget request said Amtrak may (emphasis added) cover up to 100 percent of the capital costs needed to launch a route.

It will negotiate memorandums of understanding with state sponsors and, presumably, those negotiations will involve capital costs to be contributed by the states.

“As the nation’s passenger rail provider, Amtrak takes a system-wide lens to these investments to ensure efficiencies in operations, procurement, and supporting services,” the budget document said.

It is likewise noteworthy that the budget request in describing the new corridors program does not say per se that these corridors are intended to replace the long-distance trains.

At the same time, the budget request does not specifically say, as does the Trump administration FY2021 budget request does, that long-distance trains should be phased out in favor of new corridor services.

It does say that the funding being requested for new corridors is intended to supplement the funding requests for the Northeast Corridor and national network in FY2021.

That appears to be a way of saying that Amtrak will put off for at least another fiscal year the matter of carving up the long-distance routes into a series of corridor services.

The Amtrak budget request seeks to frame the new corridors program as an expansion of the Amtrak network and uses such language as the need to provide efficient and effective service.

It also repeats the boilerplate language that Amtrak President Richard Anderson has been espousing about the need to keep up with a changing and evolving transformation of population, demographic and travel needs.

Amtrak’s budget request can be found at https://www.amtrak.com/content/dam/projects/dotcom/english/public/documents/corporate/reports/Amtrak-General-Legislative-Annual-Report-FY2021-Grant-Request.pdf

Budget Proposal Gets Muted Reaction in Washington

February 16, 2020

A Trump administration proposal to more than halve Amtrak funding in federal fiscal year 2021 received a muted response on Capitol Hill.

The Rail Passengers Association wrote on its blog that congressional leaders in both parties are saying there is a two-year budget agreement in effect and they expect that will guide the appropriations process.

“We’ve got the caps deal in place,” said Senate Majority Leader Mitch McConnell. “We negotiated it last year. It’s good for the second year, and we’ll comply with that.”

Nonetheless, RPA is trying to activate its members to contact Congress in opposition to the Amtrak funding cuts.

The administration’s budget proposal calls for slashing Amtrak funding from the $2 billion appropriated for FY2020, which ends on Sept. 30, to $936 million.

The budget proposal would reduce funding for the Northeast Corridor from $700 million to $325 million.

Funding of the national network would fall from $1.3 million to $611 million.

The budget document calls for the elimination of Amtrak’s long-distance passengers trains over the next five years.

Specifically, that would be accomplished through implementation of a new grant program whose objective is to encourage state and local governments to fund Amtrak service in corridors of 100 to 500 miles.

The budget document gave few details about the grant program other than it would only last through FY2015.

However, the administration made clear that it sees no future for long-distance trains.

“Amtrak trains inadequately serve many rural markets while not serving many growing metropolitan areas at all,” the budget document said. “The Administration believes that restructuring the Amtrak system can result in better service at a lower cost, by focusing trains on better-performing routes, while providing robust intercity bus service connections.”

RPA said the proposed $550 million in National Network “transformational grants” appears to be designed to help Amtrak cover the costs of multi-year labor agreements and contracts.

The rail passenger advocacy group argues that those agreements in tandem with the lost revenue from the eliminated trains and lost connections will make ending Amtrak’s long-distance network an expensive proposition.

Last year the Trump administration proposed a similar funding program that would have given states money to implement intercity bus services in lieu of passenger trains.

That idea went nowhere in Congress and the long-distance network survived intact.

The FY2021 budget proposal promised to provide details at an unspecified later date as part of the administration’s proposal for renewing the surface transportation act that expires on Sept. 30.

That document will, presumably, also provide a more complete picture of what corridor services Amtrak and the U.S. Department of Transportation have in mind for funding with the federal transformation grants.

For more than a year Amtrak President Richard Anderson has talked up the concept of corridor services between urban centers, particularly in the South and West.

Anderson’s concept is to provide multiple daily frequencies on those routes.

In his public comments and congressional testimony, Anderson has said many cities served by long-distance routes are served poorly due to scheduling or lack of service frequency.

Amtrak executives have also in recent weeks visited state legislative transportation committee hearings to talk up the corridors concept.

An Amtrak public affairs manager spoke in Tennessee in favor of a new route between Nashville and Atlanta.

The same official also spoke in Kansas about an extension of the Heartland Flyer to the Sunflower State via Wichita.

In both instances, the Amtrak executive made clear that state and local governments will be expected to underwrite the operating losses of the routes.

During the Kansas hearing, the Amtrak executive referred to a yet to be enacted fund to help states fund new service.

The Trump administration budget proposal appears to be the framework for that fund.

Last year in response to questions raised during a congressional hearing Amtrak in a letter to senators declined to list the proposed corridors that it is studying, but indicated that it would continue to work with states that have expressed an interest in new Amtrak service.

Among the routes in states that have worked with Amtrak in recent years on service expansions are a route between Duluth, Minnesota, and the Twin Cities; an extension of Northeast Regional service to Bistol, Virginia; and a train between Chicago and the Twin Cities on the route of the Empire Builder.

There are no shortage of potential new Amtrak routes including some that have been discussed for years but failed to gain political traction.

That would include the 3C corridor in Ohio between Cleveland and Cincinnati via Columbus and Dayton.

Amtrak has never served that route, although it does provide service currently to Cleveland and Cincinnati with long-distance trains.

Columbus and Dayton lost Amtrak service on Oct. 1, 1979, with the discontinuance of the New York-Kansas City National Limited.

If Congress does, indeed, follow the budget deal reached last year, it seems likely that Amtrak’s services in the next fiscal year will be the same as those now operating.

Budget proposals are more policy statements and aspirational statements than they are blueprints.

The Trump administration is not the first to call for elimination of Amtrak’s long-distance passenger trains.

The real action is likely to be in the political wrangling over the surface transportation renewal bill and even action on that is not guaranteed despite the looming Sept. 30 expiration of the current FAST Act.

Congress might seek to extend the current FAST act through a continuing resolution just as it does the federal budget when it fails to reach agreement on a appropriations as the current fiscal year is coming to a close.

FY2018 Budget Bill Boosts Amtrak Funding

March 26, 2018

A federal budget bill approved by Congress last week contained an increase in funding for Amtrak, although that funding boost is expected to be used to help pay for the Gateway project in New York-New Jersey.

However, Amtrak’s long-distance trains would also receive an upward bump in funding.

News reports indicate that Amtrak will receive a minimum of $388 for the Gateway project, which involves replacement of tunnels leading into New York City beneath the Hudson River.

The $1.3 trillion Consolidated Appropriations Act of 2018 allocates more money for passenger rail projects than Congress has approved since the 2008 economic stimulus spending programs ended.

The budget directs $650 million to the Northeast Corridor while Amtrak’s national network will receive $1.292 billion. Those are both increases from 2017 funding of $328 million for the NEC in 2017 and $1.1 billion for the national network. Amtrak’s total appropriation will be $1.942 billion, up from $1.428 billion.

Other transportation programs also fared well in the budget bill.

The Transportation Investment Generating Economic Recovery program was given a $1 billion boost over 2017 levels to $1.5 billion available. At least 30 percent of these grants will go to rural communities.

Federal investments in rail infrastructure and safety programs was funded at $3.1 billion.

Also included is funding for the Federal-State Partnership for State of Good Repair grants at $250 million to address critical rail investments nationwide and on the NEC.

Rail safety and research programs received $287 million to fund inspectors and training, plus maintenance and safety investments to the physical rail infrastructure.

Consolidated Rail Infrastructure and Safety Improvements grants were given $593 million to fund capital and safety improvements, planning, environmental work and research. There is also $250 million included for grants available to rail operators for the installation of positive train control.

The Railroad Rehabilitation and Improvement Financing loan program received a $25 million allocation for the first time and $350,000 has been set aside to help short line and regional railroads participate in the program.

The Federal Transit Administration received $13.5 billion, which includes $9.7 billion “to help local communities build, maintain, and ensure the safety of their mass transit systems.”

Within the $9.7 billion is $2.6 billion for Capital Investment Grants transit projects. “New Starts” projects are funded at $1.5 billion, Core Capacity projects at $716 million and Small Starts projects at $400 million.

The Trump administration and President Donald Trump in particular have opposed federal funding of the Gateway project, saying that the states of New York and New Jersey needed to spend more of their own money for most of the project.

The project involves building a new Tunnel under the Hudson River and replacing the century-old Portal Bridge on the NEC.

There has been speculation that Trump opposed the Gateway project as retribution to New York and New Jersey Congressmen and Senators who opposed a tax cut bill that he favored and which Congress passed last December.

At one point Trump had threatened to veto any bill containing federal funding for Gateway.

The 2018 budget will circumvent the Trump administration’s opposition to federal funding of the Gateway project.

Amtrak is likely to contribute a minimum of $388 million to Gateway though its Northeast Corridor Account, while New York and New Jersey will receive $153 million from the Federal Transit Administration’s High-Density States and State of Good Repair grant programs.

Gateway is projected to receive 60 percent of the original federal dollars intended for it.

The budget bill ensured that the U.S. Department of Transportation will have limited ability to withhold the $650 million earmarked for the Northeast Corridor Account, which also funds projects throughout the region.

Trump Wants to Cut Amtrak Funding in Half

February 14, 2018

Here we go again. The proposed fiscal year 2019 federal budget released this week by the Trump administration proposes cutting in half the federal funding for Amtrak.

As the administration did a year ago, it is taking aim at long-distance trains, calling for funding of those to be slashed and for states served by the trains to pick up that funding.

But even the Northeast Corridor would face federal funding cuts, seeing its funding reduced from $328 million to $200 million.

Total Amtrak funding would be $538 million. Congress appropriated $1.2 million for Amtrak in the current fiscal year, which runs through Sept. 30.

The Trump administration proposed a similar budget cut for Amtrak last year, but Congress ignored it.

Amtrak issued a statement saying the proposed cuts would negatively affect the more than 31 million people who ride Amtrak.

“As the budget process progresses, we look forward to working with the administration, Congress, state partners and other stakeholders to consider these proposals and the impacts they could have on this important part of the nation’s transportation system,” the passenger carrier said.

Amtrak said it remains focused on running efficiently, saying that it covered 94.7 percent of its total network operating costs through ticket sales and other revenues in fiscal year 2017, but it must rely on some level of federal funding.

In a 160-page budget narrative submitted to Congress, the White House Office of Management & Budget said that having states share the burden of funding Amtrak would make “states more equal partners with the federal government, and would strengthen the responsiveness of Amtrak to the communities they serve.”

The narrative contends that along with cuts to Amtrak funding the administration “proposes reforms to Amtrak to improve efficiencies and effectiveness of long-distance routes.”

“State contributions to long distance routes is only one tool in the menu of options,” the administration said it will be exploring.

House OKs $1.4B for Amtrak

September 20, 2017

The U.S. House of Representatives has appropriated money to Amtrak, but not to TIGER grant funding.

The House last week approved a $2.1-trillion budget federal budget for fiscal year 2018.

The bill now goes to the Senate, which can accept it as is or pass its own budget with the differences being worked out in a House-Senate conference committee.

Amtrak funding in the bill is $1.4 billion, of which $1.1 billion is for the national network and $328 million for Northeast Corridor grants.

Lawmakers also approved $500 million for federal-state partnership for state of good repair grants.

Another $25 million was earmarked for Consolidated Rail Infrastructure and Safety Improvements Grants, which is down from $68 million in 2017.

The Federal Transit Administration Capital Investment Grant program would receive $1.75 billion, including $1 billion for funding grant agreement projects, and $145 million for core capacity projects. FTA’s “Small Starts” program would receive $182 million.

White House Seeks Amtrak ‘Anomaly’ Funding

September 7, 2016

President Obama is requesting a full year of government funding for Amtrak in fiscal year 2017 as part of a list of “anomalies” proposed for a continuing resolution to keep the federal government operating after the 2016 fiscal year ends on Sept. 30.

Amtrak logoThe Obama Administration is seeking $1.39 billion for Amtrak.

The reason for the request is due to Amtrak’s planned transition to a new accounting structure that is required by the 2015 FAST Act.

Rail passenger advocates say that if the Amtrak funding is approved it would put Amtrak on more solid financial ground but delay by a year any funding of the FAST Act’s passenger rail grant programs.

Passenger train advocates are seeking approval for funding of the new programs that have already been agreed to by House and Senate appropriations committees.

Amtrak Seeks $1.8B in FY 2017

February 19, 2016

In a five year improvement plan, Amtrak is seeking $1.8 billion from Congress for fiscal year 2017.

The request includes $920 million for capital expenditures, $650 million for operating expenses and $263.7 million in federal discretionary grant programs authorized under the new surface transportation bill that Congress approved last year.

Amtrak logoThe budget request would cover continued efforts to improve service and safety, funding for implementation of positive train control, an expansion of Wi-Fi service throughout Amtrak’s network, and costs related to the Hudson River tunnel project.

“Amtrak’s capital needs are pressing. Outdated and inadequate infrastructure and equipment must be replaced to sustain and grow both the Amtrak system and the economy it supports,” Amtrak CEO Joseph Boardman wrote in a letter to accompany the budget request.

Boardman said Amtrak’s ridership last year exceeded 30 million for the fifth consecutive year, with ridership records set on the Northeast Corridor and two other services.

At $2.185 billion, ticket revenue was slightly less than the previous year.

Noting that Amtrak’s cost recovery was about 90 percent for the second consecutive year, Boardman said ticket revenue was “enough, when combined with our efforts to control costs, to sustain our financial performance.”