The U.S. House of Representatives yesterday voted to strike down a Bush administration proposal that would cut off federal funding to beleaguered Amtrak.
In lieu of voting in favor George W. Bush's proposal to "zero out" federal funding, the House by voice vote opted to allocate an additional $626 million to the railway operator's budget--now totaling nearly $1.2 billion--for its next fiscal year, which begins Oct. 1. The spending bill now moves to the Senate.
Despite winning favor among some business travelers and corporate travel managers--particularly those in the Northeast Corridor--Amtrak consistently has been a losing proposition since its inception in 1971 and, in recent years, has increased borrowing from the federal government. In fact, Amtrak requested more funds than those allocated by the House.
President Bush and U.S. Secretary of Transportation Norman Mineta championed a proposal to cut off federal funding and potentially privatize Amtrak, sparking a battle in Washington
(BTN, March 21). In a statement issued yesterday, Mineta said he and Bush would continue that battle. "Handing over more than a billion dollars with no reforms attached only gives Amtrak a blank check to continue misspending taxpayer money," Mineta said. "The president and I will continue to work with the Congress to ensure passage of reforms designed to save Amtrak and develop financially sound intercity passenger rail in this country."