Senate Committee Would Up Amtrak Funding

A Senate committee last week released a proposed federal fiscal year 2023 appropriations bill for transportation spending, including Amtrak funding.

The passenger carrier would receive $2.6 billion, a $269 million increase over the current fiscal year.

The Senate Appropriations Committee is proposing $2.51 billion for the Federal Transit Administration’s Capital Investment Grants program; $200 million for the Federal-State Partnership for State-of-Good-Repair for the replacement, rehabilitation, and repair of intercity passenger rail infrastructure; and $535 million for the Consolidated Rail Infrastructure and Safety Improvement program.

The Senate proposal provides higher Amtrak funding levels than a recently approved House budget bill but would grant $355 million less than what the House approved for the federal-state partnership program.

Whereas the House approved $882 million for Amtrak’s Northeast Corridor, the Senate bill contains $1,135,000. The House approved $1,463,000 for Amtrak’s network whereas the Senate bill would appropriate $,465,000.

Neither the House budget bill nor the Senate proposal contains any funding for passenger rail restoration and enhancement grants. Both chambers also omitted funding for railroad grade crossing elimination projects.

Both programs received no funding in FY2022 although he grade crossing program was authorized to receive up to $500 million and the restoration and enhancement program was authorized $50 million.

In FY2022, Congress approved $875 million for Amtrak’s Northeast Corridor and $1,457,000 for the national network.

None of the spending bill amounts include money approved in the Infrastructure Investment and Jobs Act, which is allocated separately from annual appropriations.

In a related development, the proposed Inflation Reduction Act of 2022 introduced in the Senate omits funding for high-speed rail programs.

Earlier drafts of the bill contained $10 billion in dedicated funding for electrified high-speed rail.

The Rail Passengers Association noted in a report on its website that much of the focus in the energy bill is funding the transition to electric automobiles, which RPA described as “another in a long line of subsidies for highways.”

House OKs FY2023 Transportation Funding

The House has approved an appropriations bill that includes funding for Amtrak and other rail programs.

The bill cleared the House on a 220-207 party line vote. It contains $3.8 billion in discretionary funding for rail programs, which is on top of $13.2 billion in guaranteed rail funds provided by the Infrastructure Investment and Jobs Act.

Known as the Transportation-Housing, and Urban Development budget bill, it contains a 23 percent increase in discretionary investments for public transit and passenger and freight rail.

Amtrak would receive $882 million for the Northeast Corridor and $1.46 billion for the National Network.

It is unclear what will happen to the bill in the Senate. FY2023 begins on Oct. 1, but in recent years Congress has failed to approve budget bills in advance of the next fiscal year and has kept federal funding flowing through a series of continuing resolutions.

Transportation Funding Advances in House

Federal fiscal year 2023 appropriations legislation for transportation continued last week to make its way through the House.

The House Committee on Appropriations moved the Transportation, and Housing and Urban Development appropriations bill to the House floor where it is expected to be considered later this month.

The THUD bill as it is known provides a 23 percent increase in discretionary spending for transit and passenger and freight rail.

The appropriations made no major changes in funding levels approved recently by the transportation subcommittee of the appropriations committee.

That committee approved $2.3 billion in Amtrak funding, which fell short of the $3 billion recommended by the Biden administration and the $3.3 billion sought by the passenger carrier.

Once approved by the House the THUD bill will move to the Senate. FY2023 begins on Oct. 1.

In recent years, the Senate has failed to meet the deadline, which has necessitated a series of stopgap spending bills until final action was taken.

Committee OKs Transportation Spending Bill

A congressional committee last week approved a bill that provide a 23 percent increase in discretionary spending for public transit, and passenger and freight railroads in federal fiscal year 2023.

The Transportation, and Housing and Urban Development appropriations bill was approved by the transportation subcommittee of the House Appropriations Committee on a voice vote.

The bill is expected to be considered this week by the full Appropriations Committee, which wants to clear spending bills before the July 4th recess.

It would then move to the Senate. The 2023 federal fiscal year begins on Oct. 1.

Much of the appropriations proposed by the bill are above the amounts appropriated for the current fiscal year, but below what was authorized in earlier congressional action.

For example, the bill approves $1.6 billion for Amtrak’s national network. That is an increase over the $1.4 billion appropriated for the current fiscal year but short of the $2.2 billion authorized for FY 2023.

Total Amtrak funding in the bill would be $2.3 billion versus the $3 billion proposed by the Biden administration and $3.3 billion sought by Amtrak.

The passenger carrier had said it needed that level of funding because of “the lingering effects of the COVID-19 pandemic [that] continue to affect revenue and ridership.

Amtrak said “robust FY 2023 grant funding is needed to enable Amtrak to continue operating our long-distance trains.”

The bill approved last week allocates $500 million for the Federal State Partnership for Intercity Passenger Rail program, which funds capital projects to bring facilities and infrastructure to a state of good repair, improve performance, and expand or establish new intercity passenger rail services.

The Consolidated Rail Infrastructure and Safety Improvements program would receive $630 million. This includes a $150 million set-aside to “support the development of new intercity passenger rail service routes including alignments for existing routes.”

The bill contains language that seeks to prevent Amtrak from reducing or eliminating national network service, stating that Amtrak may not “discontinue, reduce the frequency of, suspend, or substantially alter the route of rail service on any portion of such route,” except in an emergency or during maintenance or construction outages.

No funding was appropriated for the Restoration and Enhancement Grants program, which provides operating assistance grants for initiating, restoring, or enhancing intercity passenger rail transportation.

Instead, the bill says Amtrak may use up to 10 percent of its $1.46 billion national network grant for the activities outlined in the service restoration program.

Biden Wants Increase in Transportation Spending

The Biden administration has proposed increasing funding on railroad and public transit programs in federal fiscal year 2023 in a $5.79 trillion budget proposal.

The administration sent its budget recommendations to Congress this week.

Biden proposed spending $105 billion for the U.S. Department of Transportation along with another $37 billion in advance appropriations provided for by the Infrastructure Investment and Jobs Act.

The budget calls for $4.66 billion for the Federal Railroad Administration. The agency received $2.86 billion in the past two fiscal years.

Amtrak would get $3 billion, including $1.8 billion for the national network and $1.2 billion for the Northeast Corridor.

The Federal Transit Administration would receive $16.87 billion, which includes $300 million for rail car replacement.

Some funding in the proposed FTA budget would cover work on the Portal North Bridge replacement project in Amtrak’s Northeast Corridor and $100 for engineering work on the Hudson Tunnels project between New York City and New Jersey.

Other notable transportation funding includes $2.85 billion for Capital Investment Grants, $500 million for the Consolidated Rail Infrastructure and Safety Improvements grants, $555 million for the Federal-State Partnership for Intercity Passenger Rail program, $245 million for the Railroad Crossing Elimination program, and $1.5 billion for Rebuilding American Infrastructure with Sustainability and Equity grants and the new National Infrastructure Project Assistance Grant program,

The figures for those programs do not include funding authorized by the infrastructure act approved last year. All funding proposals are subject to congressional approval.

House Budget Bill Boosts Transportation Spending

The House Appropriations Committee last week approved a spending bill for fiscal year 2022 that would boost spending on transportation programs over FY2021 levels.

The bill, known as the Transportation, and Housing and Urban Development, and Related Agencies legislation provides an increase of $1.9 billion for the U.S. Department of Transportation.

USDOT is allocated $105.7 billion in budgetary resources, a 22 percent increase above the FY2021 enacted level ($86.7 billion) and President Joseph Biden’s FY2022 budget request of $87 billion.

Among the spending levels authorized for transportation programs are:

• $1.2 billion for National Infrastructure Investments, a 20 percent increase from FY 2021. It includes $20 million for Transportation Planning Grants to assist areas of persistent poverty, a 100 percent increase over FY 2021. An additional $100 million is included for a new grant program to “spur thriving communities nationwide.”

•$4.1 billion for the Federal Railroad Administration, up 46 percent from FY 2021. This includes $625 million for the new Passenger Rail Improvement, Modernization, and Expansion (PRIME) grant program “to support projects that improve, expand or establish passenger rail service”; $500 million for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program, a 33 percent increase from FY 2021; $2.7 billion for Amtrak, a 35 percent boost over FY 2021, which includes $1.2 billion for Northeast Corridor Grants and $1.5 billion for National Network Grants.

• $15.5 billion for the Federal Transit Administration, including $12.2 billion for Transit Formula Grants to expand bus fleets and increase the transit state of good repair; $2.5 billion for Capital Investment Grants to construct more than 23 new transit routes nationwide, a 22 percent increase above the FY 2021 enacted level and equal to the president’s budget request; and $580 million for Transit Infrastructure Grants to purchase more than 300 zero-emission buses and 400 diesel buses, and to support “transformative research for transit systems,” which is a 12 percent increase above FY 2021.

FTA Changes Matching Fund Rule

The Federal Transit Administration has made a significant rule change for projects seeking to receive Capital Investment Grant funding.

The agency no longer will prohibit grant recipients from using CIG grants as part of their local funding match when applying for grants.

That prohibition, which had been imposed during the Trump administration, has been criticized for establishing barriers to certain public transit projects.

In a letter sent this past week the FTA said it will now “rely on the CIG statutory framework”to ensure that projects have met federal transportation law, the Major Capital Investment Projects Final rule, and the CIG Final Interim Policy Guidance published in June 2016.

Some congressional Democrats had accused the Trump administration of using funding policies to delay or thwart such Northeast Corridor rail infrastructure projects as replacing the century old Portal Bridge and constructing a new tunnel linking New York City and New Jersey under the Hudson River, also known as the Gateway project.

Under the new FTA policy, states will be allowed to use federal loans to cover their share of a project’s costs, something New York and New Jersey had planned to do with their federal loans in order to meet their 50 percent match of funding for the Gateway project.

Former Secretary of Transportation Elaine Chao had in May 2018 prohibited states from using federal loans as part of their project match funding.

Although Congress a year later prohibited USDOT from doing that, the agency continued to maintain its policy of banning use of loans for state matching funds.

Biden Appoints Team to Review Transportation Programs

A Los Angeles public transit executive has been appointed to lead a team reviewing transportation programs for President-Elect Joseph Biden.

Los Angeles County Metropolitan Transportation Authority CEO Phillip A. Washington will lead the 18-member team which includes members from labor unions, academia, public transportation agencies, retired members of Congress, think tanks, private consultants, and the aviation field.

The team will advise the incoming Biden administration  on the U.S. Department of Transportation, Amtrak, the National Transportation Safety Board and the Federal Maritime Commission among other transportation programs and agencies.

It is one of 39 agency review teams that have been established to advise Biden. All members of the transportation team will be volunteers.

The transportation review team will meet with former agency officials and experts who closely follow federal agencies, and with officials from think tanks, labor groups and trade associations.

More Details About Bill That Extends FAST Act, Enacts Stopgap Federal Funding for FY2021

As reported earlier, the Continuing Appropriations Act, 2021 and Other Extensions Act will extend the Fixing America’s Transportation Act for another year and keep federal funding flowing through Dec. 11.

The bill, which was approved by a large margin in the House and is expected to receive Senate approval and be signed by President Trump, had a few items of substance for intercity rail passenger service but excluded much of what many rail passenger advocates wanted.

By extending the surface transportation authorization for a year, it ensured that Amtrak and public transit, not to mention highway construction funding, would continue.

Amtrak is expected to receive through December a prorated share of what it was appropriated in fiscal year 2020.

That means $138 million for the Northeast Corridor and $256.4 million for the national network.

The bill also eliminates a requirement that Amtrak food and beverage service make a profit.

The so-called “Mica Provision” was a legacy of former House Transportation and Infrastructure Chair John Mica who often railed against the cost of Amtrak’s food and beverage service.

However, Amtrak’s plans to reduce the operation of most long-distance trains to three times a week are not expected to be halted by the legislation.

The Rail Passengers Association wrote on its website that passenger rail largely was shut out by the bill, which it described as protecting the status quo.

The legislation also transfers $3.2 billion in general funds to the Mass Transit Account, which ensure the Federal Transit Agency will be able to process grants to transit agencies.

It also halted a $6 billion across-the-board cut of transit formula funds by eliminating the Rostenkowski Test in FY2021.

But RPA noted that extending the existing FAST Act for a year means there will not be a dedicated passenger rail trust fund and that authorizations for Amtrak funding for FY2021 remain at FY2020 levels.

RPA noted that without higher authorizations it would be unlikely that Amtrak would receive the $5 billion in funding for FY2021 that it sought.

That is the amount the passenger carrier said it needed to continue operating most long-distance trains on daily schedules.

Amtrak’s original funding request for FY2021 had been just over $2 billion.

In its post, RPA said the legislation failed to resolve any of the questions raised by Amtrak’s plan for tri-weekly service and made no changes to the service return metrics that Amtrak has established for a return to daily service next year.

The legislation also transfers $10.4 billion in general funds to the Highway Trust Fund and transfers $14 billion in general funds to the Airport and Airway Trust Fund.

Amtrak’s FY2021 funding will be hammered out later this year, probably in the lame duck session of Congress after the November elections.

Congress Moves to Keep Federal Funding Flowing in FY2021, Extend Transportation Authoritzation

Congress took the first step on Tuesday toward approving a continuing resolution to keep federal funding moving past the end of federal fiscal year 2020, which concludes Sept. 30.

The House of Representatives approve a continuing resolution on a 359-57 vote.

Included in the measure was a one-year extension of the current surface transportation law, which also expires on Sept. 30.

The extension will assure continue federal funding of highway construction projects as well as public transit and Amtrak.

However, the action by Congress this week also likely means that for now there will be no additional money for Amtrak and the carrier’s plans to reduce the frequency of operation of most long-distance trains to less than daily service will be implemented in October as planned.

Rail passenger advocates had fought to more than double Amtrak funding for FY2021 in order to preserve daily service on most of those routes.

The advocates had been urging Congress to approve additional emergency aid for Amtrak and public transit in another COVID-19 pandemic aid bill.

But political differences have sunk additional pandemic assistance for now, including more aid for the airline industry.

The continuing resolution approved by the House now moves to the Senate where approval is expected.

The resolution also includes provisions to bolster the Highway Trust Fund, including a transfer of $13.6 billion from the general fund.

That includes $10.4 billion to the trust fund’s highway account and $3.2 billion for its transit account.

The House bill also includes a $14 billion transfer to the Airport and Airway Trust Fund from the general fund.

Paul Skoutelas, American Public Transportation Association chief executive officer, said the House action would provide at least $12.6 billion for transit in FY2021,

The continuing resolution will continue federal funding through Dec. 11, meaning that action on FY2021 spending is being deferred into the lame duck session of Congress after the Nov. 3 elections.

It is possible that additional Amtrak and transit funding might be taken up then.