WASHINGTON - The Bush administration will for the first time propose eliminating operating subsidies for Amtrak as part of a push to cut budget deficits, people close to the budget process said yesterday.
The President's fiscal 2006 budget, which he will send to Congress on Monday, will allocate no subsidy for the national passenger railroad to run its trains. But it will offer $360 million for maintenance on the flagship Northeast Corridor between Washington and Boston - which Amtrak owns - and for commuter services, the sources said.
The proposal must be approved by Congress.
Last year, the administration proposed $900 million in subsidies, but Congress increased that to $1.2 billion after Amtrak said the lower figure would force it to shut down.
An Amtrak spokesman would not comment yesterday.
Senior administration officials declined to discuss the budget figures but described the decision as part of Bush's broader push to restrain spending and eliminate what they see as wasteful programs.
One senior official said: "Amtrak should be treated like any other form of transportation and funded like any other form of transportation. The other forms don't get operating subsidies."
The administration has long hoped to wean Amtrak from federal subsidies, criticizing the condition of its infrastructure and service. It wants to open its rail lines up to competition.
Amtrak employs 22,000 people and runs 265 trains a day, excluding commuter service, in 46 states. It has never made money in its 34-year history.
To get its subsidy in recent years, Amtrak has had to agree to much closer Transportation Department oversight of its books and its operations.
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The President's fiscal 2006 budget, which he will send to Congress on Monday, will allocate no subsidy for the national passenger railroad to run its trains. But it will offer $360 million for maintenance on the flagship Northeast Corridor between Washington and Boston - which Amtrak owns - and for commuter services, the sources said.
The proposal must be approved by Congress.
Last year, the administration proposed $900 million in subsidies, but Congress increased that to $1.2 billion after Amtrak said the lower figure would force it to shut down.
An Amtrak spokesman would not comment yesterday.
Senior administration officials declined to discuss the budget figures but described the decision as part of Bush's broader push to restrain spending and eliminate what they see as wasteful programs.
One senior official said: "Amtrak should be treated like any other form of transportation and funded like any other form of transportation. The other forms don't get operating subsidies."
The administration has long hoped to wean Amtrak from federal subsidies, criticizing the condition of its infrastructure and service. It wants to open its rail lines up to competition.
Amtrak employs 22,000 people and runs 265 trains a day, excluding commuter service, in 46 states. It has never made money in its 34-year history.
To get its subsidy in recent years, Amtrak has had to agree to much closer Transportation Department oversight of its books and its operations.
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This is the first thing that I have found that I can support GWB on. I'm totally behind him on this.
I have used Amtrak for 3 years to commute to work. They have abysmal customer service, decrepit passenger cars, and poor track maintenance. They have not turned a profit in their entire 34-year existence. They cry for millions of dollars each year.
Best thing to do is to open up the nation's rail lines to competition. Amtrak is a money pit. When my home state of PA voted to give Amtrak $70 million in subsidies, I complained loudly to my state reps. They laughed at the idea that competition would change things for the better, citing that previous attempts here and abroad have failed. I hope Bush can make this happen.
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