(Bloomberg News circulated the following article on August 1.)
WASHINGTON — Amtrak subsidies of more than $1.1 billion proposed in Congress “may be subject to a veto” unless lawmakers include more reforms of the passenger railroad, U.S. Transportation Secretary Norman Mineta said in an interview.
The Senate Appropriations Committee in July approved a $1.45 billion subsidy for Amtrak, less than a month after the House backed a $1.18 billion subsidy for the year that begins Oct. 1. President George W. Bush has proposed no more than $360 million without changes such as more state funding of trains.
Amtrak is getting $1.2 billion in federal subsidies in the current year and has requested a 50 percent increase to $1.8 billion. Bush wants reforms to stem losses that have totaled more than $29 billion since the Washington-based railroad began operating in 1971.
The president is trying to persuade Congress to create separate entities to manage passenger terminals and track, encourage cost cuts by letting multiple companies run trains and require eight Northeastern states to take over track ownership from Maine to Virginia. Congress rejected Bush’s plan in 2004 and in 2003, when it was first offered.
Mineta also said today that he recommends against Bush calling an emergency board for contract talks between Northwest Airlines Corp. and mechanics, saying he wants “to let the process work on both parties.”
Northwest, the fourth-largest U.S. airline, is scheduled to resume talks tomorrow with the mechanics union, which may strike unless a new contract is reached by Aug. 20. The appointment of a presidential emergency board would halt a strike for at least 30 days so the board can investigate the dispute and report to Bush.
Northwest Chief Executive Doug Steenland told reporters on July 19 that the St. Paul, Minnesota-based company’s contingency plans would help it avoid a disruption of flights and make a review board unnecessary.