[Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
[December 2, 1997]
[Page 1691]
[From the U.S. Government Publishing Office www.gpo.gov]


[[Page 1691]]


Statement on Signing the Amtrak Reform and Accountability Act of 1997
December 2, 1997

    Today I am pleased to sign into law S. 738, the ``Amtrak Reform and 
Accountability Act of 1997.'' This Act represents the first Amtrak 
reauthorization since 1992 and the most comprehensive restructuring of 
Amtrak since the early 1980s. Amtrak is a significant component of our 
national transportation services in densely populated corridors, such as 
the northeast; on medium- and short-haul routes; and on transcontinental 
routes linking cities across the Nation. In many areas of rural America 
it is the only alternative to the automobile. With the enactment of this 
legislation, we have the opportunity to set Amtrak on a course to 
continue these services into the 21st Century.
    Amtrak has entered a critical stage in its existence. Over the past 
several years, Amtrak has restructured its operations and streamlined 
its approach to inter-city rail passenger service. It has improved its 
organization and created separate strategic business units that are 
better able to respond to customer needs. It has also significantly 
reduced its need for Federal operating subsidies. Today, Amtrak recovers 
a higher percentage of its operating costs from fares--85.1 percent--
than any other passenger or commuter railroad in America, and higher 
than the rail systems in France and Germany. This Act will allow Amtrak 
to build upon this progress.
    With this Act, Amtrak will now be able to access the $2.3 billion 
capital account created in the Taxpayer Relief Act of 1997. With these 
funds, Amtrak will be able to make many needed capital improvements, 
including replacing its aging car fleet, upgrading its tracks, and 
rehabilitating stations and maintenance facilities nationwide. With 
these improvements in place, Amtrak will be able to attract new 
customers and better serve existing customers. The implementation of new 
high-speed operations in the northeast corridor between Boston and 
Washington is a key part of this greatly improved service.
    This Act will also free Amtrak to operate in a more businesslike 
manner by repealing a number of outdated requirements that hampered its 
ability to operate more like a private entrepreneurial corporation. In 
particular, S. 738 frees Amtrak to adjust its route structure to meet 
demand and to respond to competition rather than to congressional 
directive.
    The Act also addresses certain labor relations issues by directing 
that these issues be negotiated by Amtrak and its unions through 
collective bargaining, rather than by statute. In this respect, it 
carries forward the spirit of the reform-oriented labor agreement 
recently agreed to by Amtrak and one of its unions.
    This Act calls for the creation of an Amtrak Reform Council that 
will bring together individuals with expertise in the fields of 
corporate management, finance, rail and other transportation operations, 
labor, economics, and law to assist Amtrak in identifying how to operate 
more efficiently and effectively.
    As a result of these changes, we can all look forward to better rail 
service. I recognize that this Act represents a compromise of a number 
of competing concerns and competing visions for Amtrak and its future. I 
want to compliment the Senators and Representatives who devoted many 
hours to developing this needed legislation. I also want to commend the 
many individuals in the Department of Transportation and other Federal 
agencies who contributed to the development of this Act.

                                                      William J. Clinton

The White House,

December 2, 1997.

Note: S. 738, approved December 2, was assigned Public Law No. 105-134.