(The Associated Press circulated the following story by Frederic J. Frommer on February 8.)
WASHINGTON, D.C. — The leading House Democrat on transportation issues predicted a ”test of wills” Tuesday over the Bush administration’s proposal to eliminate subsidies to Amtrak.
”You’re either for Amtrak or you’re for letting it expire,” said Minnesota Rep. Jim Oberstar, the senior Democrat on the Transportation Committee.
Congress has resisted previous attempts by the Bush administration to cut funding for Amtrak, but Oberstar said the effort appears more serious this time.
”They really intend to eliminate Amtrak,” he said. ”It’s going to be a test of wills between the Congress and the administration to restore funding.”
In his budget Monday, Bush proposed eliminating Amtrak’s operating subsidy and setting aside $360 million to run trains along the Northeast Corridor if the railroad ceases operating. Amtrak is getting $1.2 billion this year in operating subsidies and capital investment.
The White House predicts that without subsidies, ”Amtrak would quickly enter bankruptcy, which would likely lead to the elimination of inefficient operations and the reorganization of the railroad through bankruptcy procedures.”
”Ultimately, a more rational passenger rail system would emerge, with service on routes where there is real ridership demand and support from local governments,” the administration said in documents supporting its proposal.
David Gunn, who took over as Amtrak’s president nearly three years ago, has cut costs but not enough to stem the railroad’s annual loss of more than $500 million.
In a statement Monday, he called the administration’s proposal ”irresponsible and a surprising disappointment…. Our costs are more under control than ever before. That’s quite an accomplishment.”
House Transportation Committee Chairman Don Young, R-Alaska, has not decided what he will do about the Amtrak proposal, said his spokesman, Steve Hansen.