Posts Tagged ‘federal budget’

Biden Administration Releases Rail Funding Details

April 12, 2021

The Biden administration has released further information about how money it has proposed to spend on transportation infrastructure will be allocated in his American Jobs Plan.

The plan has earmarked $571 billion in transportation funding including $80 billion for intercity rail passenger service.

The Rail Passengers Association said that funding would be broken down to $39 billion to modernize the Northeast Corridor; $16 billion for Amtrak’s national network; $20 billion for intercity passenger grants; and $5 billion for freight rail and safety grants.

Mass transit would receive $85 billion proposal to be divided by $55 billion for returning existing public transportation systems to a state of good repair; $25 billion to expand transit systems; and $5 billion dedicated to helping implement the provisions of the Americans with Disabilities Act.

RPA said that aside from the Northeast Corridor funding, it is not clear how the other funding for passenger rail would be used.

However, the passenger advocacy group said that taking into account White House statements on the matter none of the funding is expected to be used for existing operating costs.

It would instead be used to replace existing rail cars, upgrade existing corridors with additional trains operating at higher speeds, and launching new corridors to cities without service.

RPA said the recently released Amtrak 2035 vision map is not part of the Biden administration plan but does give an indication of what new routes might be developed.

The Biden administration also indicated it will seek $25.6 billion in discretionary transportation funding during the fiscal year 2022 federal budget. That would be a 3.2 percent increase compared with FY 2021.

Amtrak would receive $2.7 billion, a 35 percent increase, while $625 million would be set aside for a new intercity passenger rail grant program.

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.

FY2020 Budget Boosts Amtrak, Cuts Public Transit Grants

December 22, 2019

The $1.4 trillion federal fiscal year 2020 spending bill contains a boost in Amtrak funding, but also slashes some spending for public transit and railroad grant programs.

President Donald J. Trump signed the two budget bills late Friday that were adopted by Congress earlier in the week.

The budget appropriates $2 billion for Amtrak, an increase of $58 million over the FY2019 budget.

However, the budget cut rail and transit programs by 3.6 percent, a drop of $586 million, below FY2019 levels.

The Consolidated Rail Infrastructure and Safety Grants received $325 million, an increase of $70 million over FY2019.

However, the Federal State of Good Repair program was cut in half compared to FY2019 levels to $200 million for FY2020. It had received $400 million last year.

Public transportation received $12.9 billion in total. Although the transit formula grants increased from $9.9 billion in FY2019 to $10.1 billion in FY2020, the Capital Investment Grants program saw its funding plunge from $2.5 billion in FY2019 to $1.9 billion in FY2020.

The investment grants program is used to launch new rail services.

Amtrak funding will be broken down to $1.2 billion for the national network and $650 million for the Northeast Corridor.

The bill earmarks $100 million for help pay for the acquisition of new single-level passenger equipment to replace aging Amfleet equipment used in Amtrak’s NEC, state-supported and long-distance services.

The Rail Passengers Associated noted in an analysis posted on its website that the budget bill contains a number of policy statements favorable to intercity passenger rail.

That includes a statement of the sense of Congress that long-distance passenger rail routes and services should be sustained to ensure connectivity throughout the National Network.

The bill also directed the Federal Railroad Administration to count state acquisition costs and ongoing capital charges related to Amtrak’s new fleet to as a local match for any future applications to the CRISI or SOGR grant programs.

Amtrak was directed to provide a station agent in each Amtrak station that had a ticket agent position eliminated in fiscal year 2018 and was told to provide a report to the House and Senate Appropriations Committees, no later than 120 days after enactment of the budget describing the changes initiated or implemented to Food and Beverage services in FY2019 and comparing those savings with Amtrak projections.

The spending bill directed Amtrak to submit a comprehensive workforce analysis for the Amtrak Police Department.

The passenger carrier was prohibited from using funds from the bill to reduce the total number of Amtrak Police Department uniformed officers patrolling on board passenger trains or at stations, facilities or rights-of-way below the staffing level on May 1, 2019.

Budget Vote Seen Coming Next Week

December 14, 2019

News reports late this week indicated that Congressional leaders have reached agreement on a federal budget for fiscal year 2020.

The Rail Passengers Association said the budget is expected to largely maintain the status quo but contain incremental increases for Amtrak and public transit funding.

The $1.3 trillion budget is expected to be voted on by the House next Tuesday but the Senate has not yet set a date for a vote.

The Trump administration has not yet publicly signaled if the president will sign the budget bill.

Congress faces a Dec. 20 deadline to pass a budget or a continuing resolution in order to avoid a shutdown of the federal government.

Progress Reported on FY2020 Transportation Funding Bill

December 10, 2019

The Rail Passengers Association reported last week that Congress is making progress toward reaching an agreement for fiscal year 2020 transportation appropriations.

Congress faces a Dec. 20 deadline to get budgets for FY2020 approved. A continuing resolution funding the federal government in the absence of approved appropriations expires on that date.

RPA did not provide many details about the transportation budget deal other than to say that leaders of the appropriations committees in the House and Senate have agree on top-line numbers for transportation spending.

That funding includes a boost for Amtrak spending.

Reportedly, the transportation spending bill will be among the earliest budget bills to be voted on by Congress.

Congressional leaders were said to be working on 12 separate appropriations bills that need to be passed before the continuing resolution expires.

Committee Reportedly Agrees on Transportation Funding

September 14, 2019

News reports indicate that the Senate Appropriations Subcommittee on Transportation and Housing has agreed on spending $74.3 billion for transportation and housing in federal fiscal year 2020.

The committee is expected to approve appropriation levels for transportation spending that march well with what the House has approved for spending.

“I’ve worked very closely with our ranking member, our staffs have worked very closely, and I expect at least at the subcommittee level, that everything will go smoothly,” said subcommittee Chairwoman Susan Collins (R-Maine). “You never know what’s going to come out of the full committee.”

She was referring to a mark-up session expected to be held soon at which specific funding levels and policy riders will be revealed.

However, observers expect the committee will seek to avoid controversy.

Congress is also said to be seeking a temporarily fix to avert $1.2 billion in cuts to the mass transit fund triggered by declining fuel tax revenue.

There are just two weeks left before FY2020 begins and Congress is widely expected to approve a continuing resolution to continue funding the federal government through late November.

Lawmakers have said in their public comments that they expect the continuing resolution to be clean, meaning that no riders will be tacked on to create political fights.

Legislators in both parties are suggesting that there is little risk of a government shutdown.

Veto Threatened Over Transportation Funding

June 22, 2019

The Trump administration is threatening to veto a spending bill that contains an increase in Amtrak funding.

The Rail Passengers Association said the administration cited many disappointments about the bill, including its failure to eliminate Amtrak’s national network as the administration had proposed earlier this year.

The bill in question would fund programs for federal fiscal year 2020 which begins Oct. 1.

It increased funding for other transportation programs as well as Amtrak.

The administration also expressed displeasure with the funding bill for continuing to fund the California high-speed rail project and the Essential Air Service program.

RPA said the House is likely to approve the bill anyway because Democrats are in control.

The rail passenger advocacy group said that before a final House vote on the funding bill, a number of amendments are likely to be taken up including some that would slash transportation funding generally and Amtrak funding in particular.

More than 500 amendments have been submitted to the funding package.

Among them is a bid to cut transportation funding across the board by 14 percent, while another would direct U.S. DOT to adhere to a Congressional mandates that the federal government pay for 50 percent of costs in rail transit projects (compared to the 80 percent share it pays on highway projects).

The latter amendment was introduced after the administration began seeking to pay less than 50 percent on rail transit projects funded by the Capital Investment Grant program.

Another amendment would require Amtrak to follow the Worker Adjustment and Retraining Act by giving advance notice when it intends to lay off employees.

Some Republican House members fell short in their effort to remove language preventing DOT from seeking to claw back federal funding from the California high-speed rail project when their amendments were ruled out of order.

Trump Budget Would Slash Transportation Funding

March 14, 2019

The Trump administration is seeking a cut of $5.1 billion to the budget of the U.S. Department of Transportation that would also include the elimination Amtrak’s long-distance trains.

The proposed fiscal year 2020 budget would cut DOT funding by 21.5 percent and make major cuts to Amtrak funding.

The passenger carrier would receive $1.49 billion, which is a 22 percent reduction from its fiscal year appropriation of $1.9 billion.

Northeast Corridor funding would be slashed from $650 million to $325.5 million and no funding is recommended for the Gateway Tunnel project in New York and New Jersey.

The budget proposes $550 million in “transitional funding” to help states pay for Amtrak corridor routes, including those not now in operation.

The budget envisions Amtrak contracting with bus operators to provide transportation to rural areas served by long-distance trains.

The budget contended that Amtrak inadequately serves rural areas while not serving many growing metropolitan areas.

The administration cited low ridership and large operating losses of long-distance routes as the driving force for restructuring the national intercity passenger rail system.

“The administration believes that restructuring the Amtrak system can result in better service (at a lower cost) by focusing trains on shorter distance (less than 750 miles) routes, while providing robust intercity bus service to currently underserved rural areas via a partnership between Amtrak and bus operators,” the budget states.

Much of the thrust of the budget is to transfer funding of transportation from the federal government to state governments.

“The 2020 Budget  . . .  recognizes that the federal government is not — and should not be — the primary funder of the nation’s transportation systems,” the budget document said.

The American Public Transportation Association said the budget would fund public transportation at $12.4 billion, a cut of $998 million from the FY2019 enacted level of $13.4 billion.

Most of that decrease comes from cuts in the Capital Investment Grants program, a discretionary and competitive federal grant program that funds projects for light, heavy and commuter rail, as well as streetcars and bus rapid transit services.

The administration proposes spending $1.5 billion for CIG programs, a cut of $1 billion from current funding levels.

The CIG program funding recommendation would make $500 million available for new CIG projects.

However, the budget would fully funds Fixing America’s Surface Transportation Act programs authorized from the Highway Trust Fund.

It also would double funding for INFRA grants to $2 billion. These can be used for ports, intermodal, or rail projects including grade crossing separations, in addition to highway projects.

The Better Utilizing Investments to Leverage Development program would receive $1 billion, a $100 million increase.

The budget contains $200 billion for “other infrastructure projects,” but those are described as “visionary projects” such as 5G cellular communications and artificial intelligence.

Trump Budget Also Targets Air Service, Fees

February 15, 2018

Amtrak is not the only form of transportation with a target on its back in the Trump administration’s budget proposal for fiscal year 2019.

In the same way that the budget seeks to slash funding for Amtrak, particularly its long-distance trains, the administration wants to cut funding for essential air service to small airports.

The budget proposed cutting expenditures for the EAS program from $150 million to $93 million.

The budget would also raise fees related to transportation security, and customs and immigration fees paid by airline and cruise passengers. The federal air traffic control system would be privatized.

Amtrak funding would fall from $1.5 billion to $738 million. The budget proposal said Amtrak’s long-distance trains suffer from poor on-time performance and carry just 4.7 million of Amtrak’s nearly 32 million annual passengers. It also said the long-distance trains lose more than $500 million annually.

These proposals are not new. Most of them were in the FY 2018 budget, but Congress did not heed them.

The Trump administration budget proposal calls for appropriating $15.6 billion for the Department of Transportation, a cut of 19 percent from what Congress gave it in FY 2017.

The most recent data available from the U.S. Department of Transportation, dated October 2016, shows that the federal government funded commercial airline flights to 120 communities in the continental U.S and Hawaii.

The program, which began in 1978, also makes 237 Alaskan communities eligible for funding.

The rational for the EAS program was to enable remote towns to remain in the national air traffic network following airline deregulation, which resulted in scores of airports losing commercial service.

“However, today many EAS flights are not full and have high per-passenger subsidy costs. Several EAS eligible communities are relatively close to major airports,” the budget proposal says.

The recommendations were part of the $4.4 trillion budget proposal the administration sent to Congress on Monday.

Among the travel security-related fees that the administration wants to increase are the 9/11-passenger security fee that is assessed on airfare from the current $5.60 per one-way trip to $6.60 in 2019 and then to $8.25 beginning in 2020.

Although the 9/11 fee is supposed to fund Transportation Security Administration airport operations, Congress has sent about a third of it to items unrelated to security.

The administration said raising the fee would result in the traveling public paying for the full cost of aviation security.

The custom inspection fee would increase from $5.65 to $7.75. This fee is assessed on air and cruise ticket prices for people arriving in the United States.

The immigration fee, which is also assessed on tickets held by air and cruise passengers entering the U.S., would go from $7 to $9.

The proposal includes ending an exemption on that fee for passengers arriving via sea from Canada and Mexico.

The budget proposal said that the customs fee and immigration fee were last increased in 2007 and 2001, respectively.

Air traffic control is now overseen by the Federal Aviation Administration, but the Trump administration wants to shift it to an independent private organization.

Doing this, the administration believes, would speed implementation of a satellite-based NextGen system while removing air traffic control from contentious appropriation debates in Congress.

Critics have said doing this would reduce public accountability and harm the interests of private aviation.

An ATC privatization bill has twice made it out of the House Transportation Committee, but has failed to pass either the full House or the Senate due to bi-partisan opposition.

Shutdown to Have Minimal Effect on Railroads

January 22, 2018

The federal government shutdown that began on Saturday is not expected to have much effect on railroad operations.

Federal safety and oversight oriented agencies such as the Federal Railroad Administration, Pipelines and Hazardous Materials Safety Administration, National Transportation Safety Board and Surface Transportation Board have designated “excepted” employees to perform accident investigations and equipment inspections related to the safety of human life and to issue emergency service orders.

However, those employees will not receive paychecks or be reimbursed for their travel expenses while the shutdown continues.

During past shutdowns, Congress agreed to grant back pay and travel reimbursements after the shutdown ended.

The heads of the agencies are presidential appointees and thus exempt from being furloughed.

Under federal law, presidential appointees have an absolute entitlement to their salaries. If needed, they can use the federal Court of Claims to get paid.

The FRA said that 487 of its 929 employees, including some in the legal department, are excepted from being furloughed due to their responsibilities for safety inspections, investigations, writing emergency orders and representing the agency in court.

Such day-to-day operations as management of federal grants and environmental reviews will not be performed during the shutdown.

Most STB operations will be on hold during the shutdown, but it provides a telephone number to be called “if you believe you have an emergency that requires immediate Board action” such as an emergency service orders.

Amtrak will continue its regular operations during the shutdown. The passenger carrier’s federal funding comes in large block grants that are sufficient to enable it to continue operating.ro