By Ron Thaniel
January 20, 2003

As U.S.MAYOR went to press, late in the evening on January 16 the U.S. Senate restored full funding for Amtrak in an omnibus spending bill.

The full Senate approved an amendment to an omnibus spending bill to restore Amtrak's proposal for $1.2 billion in subsidies this fiscal year ensuring the integrity of the national system. Republican leaders cut Amtrak's funding request by roughly a third.

Last week, Conference President Boston Mayor Thomas M. Menino and Conference Transportation Chair Fort Worth Mayor Kenneth L. Barr sent a letter to the Congress noting, "with the national economy continuing to lag, this is not the time for any reduction in transportation funding."

The letter called for $1.2 billion for Amtrak in an omnibus spending bill as adopted by the Senate Appropriators before the holiday recess.

Amtrak's President and CEO David Gunn has said that anything less than $1.2 billion would guarantee insolvency by Spring and the shutting down of the entire system. In addition, Amtrak said the eliminating trains will not generate any savings in the near term given the extensive termination notification requirements and labor protection payments that would have to be made through massive route cuts.

Before the vote, Amtrak supporters in the Senate wrote a letter to other lawmakers stating, "Amtrak will not survive unless we take responsibility for its survival — it is that simple. If we do not support Amtrak, we will seal Amtrak's fate. Amtrak will go bankrupt and shut down this spring."

The question of Amtrak funding will be settled during upcoming House-Senate negotiations on the larger spending legislation. The House wants to cut the passenger railroad's subsidy to $762 million.

The President has not said how much the Administration would accept, but has strongly opposed the full subsidy request. Mayors Menino and Barr sent a letter to the President last week supporting the full $1.2 billion need.

The Conference letter highlighted an August 5, 2002 Washington Post article noting that 71 percent of Americans favor continuing federal subsidies to Amtrak and would support additional federal funding so the passenger railroad can increase service.