Posts Tagged ‘FY 2018 federal budget’

Effort to Halt Amtrak Funding Rejected

September 7, 2017

A bid to end Amtrak funding was rejected by the House on Wednesday.

Alabama Republican Mo Brooks offered an amendment to a spending bill that would have ended $1.1 billion in federal funding of the national passenger carrier in fiscal year 2018.

The amendment failed on a 128-293 bi-partisan vote. Brooks had sought to portray Amtrak funding as “unnecessary.”

“[W]hat policy justification is there for forcing Americans who don’t use Amtrak to subsidize the travel of Americans who do use Amtrak? I know of none,” he said during the debate.

The chairman of the House Appropriations subcommittee, Mario Diaz-Balart (R-Fla.), shot back that the end Amtrak funding amendment would be “counterproductive,” because eliminating Amtrak’s federal subsidies would result in higher costs. “This bill is not just arbitrary decisions,” he said. “You see, we held hearings. And we carefully scrubbed each account to make sure that the reductions that we made were responsible and that were actually going to result in reductions. This is not the right way to do it. It is not prudent to eliminate an entire transportation option, by the way.”

Brooks attempted to argue that Amtrak passengers do not but should be forced to pay the full costs of operating Amtrak trains. But that argument failed to gain traction.

The House is expected to approve a three-month funding bill for FY 2018 this week and seek to adopt a long-term budget plan by the end of the year.

Failure to approve the budget bill could result in a federal government shutdown on Oct. 1.

Political observers expect Amtrak’s long-distance trains to survive the budget process, but how much money the carrier will receive still must be worked out.

The House has proposed spending $1.1 billion for the national network while the Senate favores  $1.24 billion. Amtrak is likely to receive an amount somewhere between the two.

Amtrak is funded through the Department of Transportation budget, which has been rolled into the omnibus spending bill that the House is considering this week

The Senate has not approved any appropriations bills, but is expected to use the House bill as a basis for negotiating in a conference committee.

The House has also approved $500 million for a federal-state partnership to bring passenger rail infrastructure into a state of good repair. Amtrak could apply for grants under that program.

Moorman Makes Pitch for Saving Long-Distance Train Funding

June 13, 2017

Amtrak President Charles “Wick” Moorman recently told Congress that eliminating funding for Amtrak’s long-distance trains in the federal fiscal year 2018 budget would cost more money than it would save.

Moorman

In a letter that accompanied Amtrak’s budget Moorman said ending the funding would cost $423 million more than keeping it.

“The Administration’s Fiscal Year 2018 budget request for the U.S. Department of Transportation proposes the elimination of Federal funding for Amtrak’s long distance services. Enactment of such a proposal would drastically shrink the scope of our network, could cause major disruptions in existing services, and increase costs for the remaining services across the Amtrak system,” Moorman wrote. “Amtrak’s initial projection is that eliminating long distance services would result in an additional cost of $423 million in FY 2018 alone, requiring more funding from Congress and our partners rather than less.”

The letter sought to highlight Amtrak’s successes last year.

“Amtrak reported strong audited financial results for the fiscal year which ended on Sep. 30, 2016, including an all-time ticket revenue record of $2.14 billion,” Moorman said. “The increased ticket revenue was fueled by a record 31.3 million passengers on America’s Railroad – nearly 400,000 more than the previous year. This is the sixth straight year Amtrak carried more than 30 million customers.

“The company covered 94 percent of its operating costs with ticket sales and other revenues, up from 92 percent the year before – a world-class performance for a passenger-carrying railroad. Thanks in part to our strong performance, Amtrak was also able to make a net reduction in long-term debt of $69.2 million.”

As Amtrak’s ongoing needs, Moorman said Amtrak needs funding to replace movable bridges that are more than 100 years old and money to pay for a backlog of crucial state-of-good-repair work in the Northeast Corridor estimated to cost $38 billion to complete.

Moorman said the Superliner equipment used by Amtrak’s long-distance trains averages more than 200,000 miles per car, per year, and the age of the fleet is nearly 40 years.