Senate Bill would Inject $10 Billion into Rail Transit [Update 2]
The Senate is poised to clear legislation Wednesday evening to reauthorize Amtrak for the first time since 1997 and renew rail safety programs, CQ Politics reports.
>>More on trains at Green Options
The bill, an amended rail safety measure, authorizes significant new funding for Amtrak at $5.3 billion in capital grants, $2.9 billion in operating grants and $1.9 billion for intercity passenger rail over five years.
The House approved the final version on Sept. 24.
The legislation would also toughen rail safety programs, including mandating rail companies to equip their cars with sensors to help avoid crashes (a provision that gained new-found support following the train collision that killed 25 people in California last month).
The Bush administration threatened to veto the Amtrak bill that the House passed back in June, but has yet to comment on the measure now being considered by the Senate.
Image credit: reivax via flickr under a Creative Commons License
Amtrak is another government bailout. It went from private to public almost two decades ago when it was mis-managed. The Government decided that it would be in it’s best interest to control the counties rails. (Like the highway system, it could be used in time of war) The problem is that the Government can manage it either, so it keeps lending itself money. (they would have you believe that it’s a private industry through lack of acknowledgment)
Just like any other gov. agency, it has no clue as to the market rate, and under charges. Until it starts charging more, you and I will continue to pay out of pocket taxes to fund a broken system.
Unfortunately, you will not find a railway system around the world that can sustain itself on its own revenues. They live and die by the gov’t subsidy.
Why do ours in the US pale in comparison to those in Europe? Largely because of the higher population density, but also because petroleum has traditionally been more expensive; and also because European trains are more heavily subsidized.
[...] no wonder that the U.S. Senate has introduced a bill to expanded needed funding to the tune of $10 billion for intercity rail transportation and Amtrak. Even Barack Obama hopes to revitalize and strengthen intercity rail travel (he’s a cosponsor [...]