WASHINGTON, D.C. — Transportation Secretary Norman Mineta began seeking congressional support Thursday for an Amtrak rescue plan that most legislators agreed was necessary but some were reluctant to embrace, a wire service reported.
Mineta and members of Amtrak’s governing board reached a tentative agreement Wednesday night on a proposal to help the railroad close a budget gap of more than $200 million.
Amtrak had warned that without government help, it would begin shutting down its nationwide train system as early as next weekend.
“The most important thing right now is to get some money to Amtrak in the quickest way possible,” said Rep. Jack Quinn, R-N.Y., chairman of the House Transportation and Infrastructure subcommittee on railroads. But Rep. Peter DeFazio, D-Ore., said, “All we’ve done is stick a finger in the dike and pass the ball back to Congress.”
Mineta told a joint hearing of two Senate subcommittees Thursday that the Transportation Department will arrange an immediate $100 million loan to Amtrak. That amount will ensure the passenger railroad’s survival through the middle of August, said Amtrak President David Gunn.
Under the agreement, the Transportation Department would also join Amtrak in asking Congress to provide the other $100 million, though the form of that assistance is the subject of debate.
Pressed by Sen. Patty Murray, D-Wash., Mineta said the preferred action by Congress would be an appropriation — which, unlike a loan, would not add to Amtrak’s growing debt, estimated at $3.85 billion as of March. Mineta later told Murray that the Bush administration had not decided how it wants Congress to provide its share of the help, and Transportation Department officials were leaning toward a loan.
Until such details are worked out, officials said the deal remained tentative. Mineta and Amtrak leaders visited and called legislators throughout the day.
Sen. Ernest Hollings, D-S.C., said the administration is seeking only to put off Amtrak’s financial crisis. “We’ve had no leadership whatsoever from your department on Amtrak,” he told Mineta.
Sen. John McCain, a leading critic of Amtrak, said the rescue package is merely “one in a long series of bailouts” for Amtrak since its creation by the government in 1971. McCain, R-Ariz., said Amtrak’s governing board should be replaced.