By Kevin McCarty
October 3, 2011

The House Appropriations Subcommittee responsible for funding transportation programs recently approved its appropriations bill for fiscal year (FY) 2012, proposing a significant reduction in funding for Amtrak, the nation's intercity passenger rail corporation.

Amtrak's overall funding would be reduced to $1.1 billion - more than 25 percent below current funding - mostly by cutting operating assistance. In fact, the panel's bill reduces operating funds by 60 percent for the new fiscal year, which just began this month.

Specifically, the Subcommittee's bill would eliminate all operating support for state'supported routes, a proposal that would effectively terminate service in many instances, since states would be given no time to plan or secure additional resources to transition to state-only funding support.

The 15 states that financially contribute to the operating losses on Amtrak services are: California, Illinois, Maine, Michigan, Missouri, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Texas, Vermont, Virginia, Washington, and Wisconsin.

Ironically, Amtrak is just now concluding negotiations with these same states to establish funding agreements going forward that move to a 85/15 (state/Amtrak) funding share for services on these routes.

Notably, the Senate counterpart panel, the Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies, approved its version of the FY'12 funding bill, holding Amtrak's funding relatively constant at $1.48 billion and preserving a federal commitment to a national passenger rail system for another year. The full Senate Appropriations Committee in its action affirmed the Subcommittee's funding levels.

At the same time, Amtrak continues to move forward with system and service improvements, and is staying on track to serve a record 30 million passengers in the fiscal year ending September 30, representing a 36 percent increase in ridership over the last decade.

Congress recently approved a continuing resolution until November 18, providing additional time for the House and Senate to move these and other bills forward and work toward final funding agreements for Fiscal Year 2012.

As the House funding panel moves to shrink the nation's intercity passenger rail system, the Administration continues to press Congress to raise its funding commitments to Amtrak and passenger rail, including high-speed rail investments. Its American Jobs Act calls for an additional $2 billion in capital funds for Amtrak, along with $4 billion in competitive funds to states and Amtrak for high-speed and intercity passenger rail investments.

The President's jobs plan also makes passenger rail/freight projects eligible under other funding initiatives, including the Surface Transportation Program, the TIFIA program and its National Infrastructure Bank proposal.