Amtrak OIG to Review How Amtrak Charges States for Cost of Providing Corridor Services

Amtrak’s Office of Inspector General will conduct a review of how the passenger carrier shares costs on state-supported corridor services.

A memorandum posted on the Amtrak OIG’s website said the audit “will be to evaluate the company’s actions to address longstanding concerns with the [Passenger Rail Investment and Improvement Act] 2009 cost-sharing methodology and the company’s billing process with its state partners.”

The memo said the OIG may expand the scope of its investigation or modify its objective during the audit.

The OIG said that during the audit it will analyze documents, invoices, and agreements related to state partner billing.

It will also interview Amtrak and state officials knowledgeable about the cost-sharing methodology and the state-supported billing process.

By federal law state and local governments must fund rail service on routes of less than 750 miles.

In the Midwest, the states of Michigan, Illinois, Wisconsin and Missouri fund Amtrak corridor services with most of those routes linking Chicago.

Pennsylvania funds Amtrak’s Pennsylvanian between New York and Pittsburgh and service in the Keystone Corridor between Philadelphia and Harrisburg, Pennsylvania.

Indiana once funded the Chicago-Indianapolis Hoosier State but withdrew its funding in 2019 and that service was discontinued. Minnesota also once funded service between the Twin Cities and Duluth.

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