WASHINGTON, D.C. — Last night, the full U.S. Senate approved an amendment to an omnibus spending bill that restores Amtrak’s request for $1.2 billion in subsidies.
Thursday’s bi-partisan amendment should secure Amtrak’s survival for another year. Prior to last night, Republican leaders had cut Amtrak’s funding request by roughly a third.
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.
David Gunn, Amtrak’s president, threatened to begin shutting down service this spring if the railroad was forced to accept less than the $1.2 billion he said was necessary to maintain operations.
Amtrak threatened a similar shutdown during its budget crisis last summer, which was resolved before any service disruption with a $300 million package of loans and cash from the government.
Senior Transportation Department officials met with commuter rail operators in Washington on Thursday to discuss the Amtrak funding situation.
The Bush administration is crafting a long-term inter-city passenger rail plan that would mandate Amtrak business reforms, make states pay more for city-to-city service and open some Amtrak routes to private competition.
Since Gunn took over Amtrak last spring, he has instituted a number of reforms, eliminated unprofitable business ventures, cut staff and found other cost savings.
“He has increased efficiently rather dramatically,” said Sen. John McCain in a Reuters news report. “We have every right to expect reform.”
McCain disclosed that Amtrak’s budget request for fiscal 2004 would be $2.2 billion.