[Congressional Record (Bound Edition), Volume 151 (2005), Part 10]
[Extensions of Remarks]
[Pages 13286-13287]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF THE TRUE REINVESTMENT FOR AMTRAK INFRASTRUCTURE IN THE 
                            21ST CENTURY ACT

                                 ______
                                 

                          HON. ROBERT MENENDEZ

                             of new jersey

                    in the house of representatives

                         Monday, June 20, 2005

  Mr. MENENDEZ. Mr. Speaker, today I am pleased to be joined by Mr. 
Nadler and Ms. Schwartz to introduce the True Reinvestment for Amtrak 
Infrastructure in the 21st Century Act, otherwise known as TRAIN-21, 
which would provide the true federal commitment to Amtrak that has been 
missing for too long.
  Amtrak is currently under attack by people who don't recognize the 
tremendous benefits generated by intercity rail in this country. Not 
the billions of dollars generated in commerce, nor the thousands of 
businesses along the Northeast Corridor whose employees are dependent 
on Amtrak, nor the national security value of having an additional mode 
of transportation, nor the benefits to our environment by taking cars 
off the road. However, 25 million people did recognize those benefits 
and rode Amtrak in 2004, which was the 2nd straight year of record 
ridership.
  Amtrak is crucial for more than just the businessmen who ride its 
trains along the Northeast Corridor. It is just as crucial for 
commuters who unknowingly are dependent on Amtrak's survival. Were 
Amtrak to go bankrupt, nearly 100,000 New Jersey commuters would be 
stranded, because over three-quarters of New Jersey Transit trains ride 
on track owned and maintained by Amtrak. And Amtrak is just as crucial 
for the people in rural Montana or Colorado, who depend on the train as 
their link to the national transportation system.
  There is no question that Amtrak has its share of problems. But there 
are two ways to address Amtrak's problems. The first is what we've been 
doing: blame Amtrak, blame labor, and keep cutting until the system 
becomes profitable. This method has been a failure. Keeping Amtrak on a 
starvation budget means maintenance can't be performed, the system 
can't be improved, and service deteriorates. This path leads to certain 
bankruptcy and the elimination of intercity passenger rail service in 
this country.
  The people who prefer this method of cutting funding and raising 
expectations seem to forget a few simple truths: First, the reason 
Amtrak was created in the first place was because the railroads were 
hemorrhaging money on passenger service and begged the government to 
take it off their hands. Second, public transportation is not 
profitable. No public transit system in the country covers its 
operating expenses with passenger fares, and virtually no intercity 
passenger rail systems in the world turn a profit, either. The trains 
that we admire in Europe are supported yearly by large government 
subsidies. Third, no form of transportation pays for itself, including 
highways. But we subsidize them because they improve the quality of our 
lives. And that's what transportation is about. It's not just getting 
from one place to another. It's about creating jobs, revitalizing 
neighborhoods, stimulating commerce, redeveloping underutilized land, 
and making us more secure.
  That's why I'm introducing this legislation today that will put us on 
the other path towards solving Amtrak's problems: Actually giving it 
the funding it needs to be successful. That means addressing the huge 
backlog of deferred maintenance on the Northeast Corridor, and 
establishing new funding mechanisms to improve rail service throughout 
the country. This idea has been tried recently, with tremendous 
success. In California, for example, a serious investment into train 
service by the State since 1998 has resulted in a near tripling of 
ridership and a doubling of revenues. They accomplished this with a 
simple formula: run more trains, run them faster, and run them on time.
  This legislation would take that model and build on it. It 
establishes a Federal/State matching program for passenger rail, 
similar to what we do for highways and transit, and it provides a 
stable funding source that's not dependent on annual appropriations. It 
does this by establishing an independent corporation, the Rail 
Infrastructure Finance Corporation, which will sell bonds and invest 
the proceeds in a way to provide for a steady stream of income. The 
Corporation will select rail projects approved for funding by the 
Secretary of Transportation, and provide 80 percent of the necessary 
money, with the State, or consortium of States, providing the other 20 
percent. And the money will be distributed in the form of contract 
authority good for 6 years, so States will be able to make firm long-
term plans.
  The Corporation will be authorized to distribute $500 million in 
contract authority each year, with the bulk of that going to four 
corridors that have been identified by Amtrak as being ``ready to go'' 
for investment: A Southeast Corridor from Washington to Jacksonville; a 
Midwest Corridor radiating outwards from Chicago to Minneapolis, 
Detroit, and St. Louis; a Pacific Northwest Corridor from Eugene to 
Vancouver; and a California Corridor running along the Pacific coast 
and through the central valley. Contract authority will also be 
distributed to states with other federally-designated high-speed 
corridors, states with long-distance Amtrak trains only, and states not 
served by Amtrak at all.
  The goals of this program are simple: run more trains, faster, and 
on-time. This does not require using exotic technologies, and it does 
not require massive new investments. This is just a simple shift of 
philosophy. Instead of trying to pare Amtrak down until it becomes 
profitable, which would have the inevitable result

[[Page 13287]]

of leaving us with no trains at all, we will expand it and improve it 
so that people begin to ride Amtrak in ever increasing numbers.
  In addition, the bill reauthorizes Amtrak at a level of $2 billion 
per year, the same level recently passed by the Transportation and 
Infrastructure Committee, which will go a long way towards addressing 
the $5 billion in backlogged maintenance on the Northeast Corridor.
  Just as important is what this bill does not do. It does not put the 
burden of paying for trains onto the already over-burdened States. It 
does not cannibalize Amtrak into different companies. It does not 
mandate the elimination of long-distance routes. And it does not harm 
the essential labor protections that cover rail workers.
  I have heard some people say that rail is the past. An obsolete mode 
of transportation for a bygone time. I strongly disagree. In fact, I 
believe that rail could be the mode of the future. With rising gas 
prices and overcrowded highways and airports, we need alternative ways 
to get around. This legislation firmly establishes a true national 
commitment to intercity rail, and put Amtrak on a path towards lasting 
success.

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