Posts Tagged ‘U.S. DOT’

Amtrak to Get $1B in Emergency Pandemic Aid

April 14, 2020

The U.S. Department of Transportation said late last week that it will be conveying $1 billion to Amtrak that was appropriated as part of the Coronavirus Aid, Relief, and Economic Security Act.

The funding was approved by Congress after the passenger carrier reported that it was expected to lose that amount of money due to a 90 percent plunge in bookings and a wave of cancellations due to the COVID-19 pandemic.

In a news release, DOT said the emergency aid will help Amtrak maintain service when the economy recovers.

DOT said the CARES funding is intended to offset the loss of ticket revenue, enable the carrier to continue to pay its employees, buy fuel for its operations and construction materials for its projects.

The CARES Act funding will grant Amtrak $492 million for the Northeast Corridor and $526 million for its national network.

At $239 million of the funding will be used in lieu of any increase in states payments for Amtrak corridor service.

Budget Proposal Slashes Amtrak by More than 50%

February 13, 2020

The Trump administration this week released its federal fiscal year budget proposal and to no one’s surprise it has proposed slashing Amtrak funding by more than half.

The budget proposal also recommends funding cuts to rail-related transportation of nearly $900 million when compared with the last two budget cycles, most of which would be achieved by appropriating less money for federal agencies that oversee rail transportation activities.

For Amtrak, the administration has proposed cutting spending on the Northeast Corridor from $700 million to $325 million.

Support for the long-distance service would fall from $1.3 billion to $611 million with those trains being phased over in the next few years.

The budget document released by the U.S. Department of Transportation calls for funding of a vaguely defined account that is meant to transition long-distance routes into corridor services of between 100 to 500 miles that would be funded in part by state and local governments.

These grants would be known as “National Network Transformation Grants — Long Distance Routes” and would receive $550 million.

Amtrak’s overall funding will decline from $2 billion in the 2020 budget to $1.5 billion in 2021.

The focus on corridor services would be in line with the vision for Amtrak that the carrier’s president, Richard Anderson, and its senior executive vice president, Stephen Gardner, have been talking up for more than a year.

Indeed the DOT budget document uses language similar to that used by Anderson and Gardner in saying that long-distance routes have outlived their usefulness and Amtrak needs to transform into a corridor-oriented operation linking urban centers.

“Long-distance routes continually underperform, suffering from low ridership and large operating losses of roughly half a billion dollars annually,” the DOT budget document states. “Amtrak trains inadequately serve many rural markets while not serving many growing metropolitan areas at all.”

This of course raises the question of whether DOT is parroting Anderson and Gardner or whether the Amtrak executives are mouthing what DOT has told them to say.

DOT said it would release later this year details about the long-distance route transformation program as part of its recommendation for a re-authorization of the FAST Act.

The administration’s budget proposal also recommends $13.2 billion for public transportation, a $303 million increase from the FY2020 enacted level, but would reduce passenger-rail grant programs by $712 million for a total of $1.8 billion.

The budget proposes a 10-year, $810 billion plan for surface transportation reauthorization to replace the FAST Act, which expires Sept. 30. That is $75 billion above the current authorized level.

Public transit would receive $155.4 billion over the next 10 years. The administration stated that it would submit a comprehensive surface transportation reauthorization proposal in the coming months, APTA officials said in a legislative update.

The Federal Railroad Administration would receive just under $2 billion compared with nearly $2.8 billion budgeted in 2020.

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.

Ports of Indiana to Benefit From DOT Grant

August 8, 2017

The U.S. Department of Transportation has proposed nearly $79 million in grants for freight-related rail, port and roadway infrastructure projects under the Fixing America’s Surface Transportation Act.

One of those grants would involve $9.85 million to the Ports of Indiana-Burns Harbor for enhanced intermodal facilities with rail and truck marshaling yards projects.

Once completed, the project would allow the Ports of Indiana to increase its cargo-handling capacity.

The project includes construction of a new 2.3-acre bulk berth facility, a truck-barge-truck conveyer system, a new westside rail yard and new rail connection that will connect the port’s main terminal with the new rail yard; dockside improvements, and construction of a truck marshaling yard.

DOT sent a notice to Congress on Aug. 2, thereby starting a 60-day period during which Congress could vote to disapprove the proposed projects if it finds a project objectionable.

The proposed awards would be distributed under the Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies grant program, which the Trump administration now refers to as the Infrastructure for Rebuilding America program.

DOT is accepting applications until Nov. 2 for fiscal year 2017 large projects and FY2018 large and small projects under the INFRA grants program.

Senators Express Dismay Over Proposed DOT Budget Cuts

July 18, 2017

Although members of a Senate committee are displeased with the Trump administration’s proposed cuts of the U.S. Department of Transportation budget for fiscal year 2018, Secretary of Transportation Elaine Chao was unmoved during a hearing held last week.

Trump has proposed slashing the DOT budget by $2.4 million. If Congress adopts the administration’s budget proposal, the DOT budget would fall from $18.6 billion to $16.2 billion with major cuts made from the hide of Amtrak and various transportation grant programs.

The budget proposal received a hearing from the Senate Appropriations Committee where some members spoke out in favor of keeping Amtrak as it is now.

“With regard to Amtrak, I am concerned about the impact that elimination of long-distance service would have on shared infrastructure with state-supported routes, such as the Downeaster in Maine,” said Sen. Susan Collins, R-Maine, chairman of the subcommittee on transportation.

“Long distance routes contribute in part to the capital expenditures for the Northeast Corridor,” said Sen. Jack Reed, D-R.I., the ranking member on the subcommittee. “That’s something of concern to many of us on the committee”

In response to a question asked by Reed as to whether DOT would be able to focus additional resources on the capital infrastructure needs of the Northeast Corridor, Chao said the Northeast Corridor is the only Amtrak route able to sustain itself and that DOT is working closely with Amtrak and local and state authorities in that region.

However, Chao said there is no money available for the Northeast Corridor except what’s in the president’s budget.

In response to a question asked by another senator, Chao suggested that finding more funding for Northeast Corridor repairs is Amtrak’s problem, not DOT’s

“These are repairs which have been delayed and the maintenance requirements are immense,” she said. “There has to be some way of looking at all these repairs, strategically figuring out [how] best to prioritize these repairs, have a program, and then execute [it].

“Amtrak has a new president, and I am very hopeful the president and the board will be able to address some of these issues.”

The Trump administration has proposed diverting money used to pay for Amtrak’s long-distance routes into funding NEC infrastructure work.

Some funding for Northeast Corridor capital projects would come from transit and commuter rail projects under the Federal Transit Administration’s Capital Investment Program.

Amtrak is relying on a Capital Investment Program grant to finance some costs of building a new tunnel under the Hudson River between New Jersey and New York Penn Station.

At the same time, the administration has proposed ending the TIGER grant program, which is used to help fund rail capital projects nationwide, including those that benefit intercity passenger rail.

Sen. Christopher Coons, D-Del., expressed concern that cuts in funding for Amtrak intercity service would increase congestion on the highways.

As Chao sees it, though, ending funding of long-distance passenger trains would enable Amtrak to focus its resources on what she termed its most vibrant component.