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 <subject>Accountability</subject>
 <subject>Federal aid to railroads</subject>
 <subject>Federal funds</subject>
 <subject>Federal/state relations</subject>
 <subject>Financial analysis</subject>
 <subject>National policies</subject>
 <subject>Passengers</subject>
 <subject>Policy evaluation</subject>
 <subject>Railroad industry</subject>
 <subject>Strategic planning</subject>
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<titleInfo>
 <title>Intercity Passenger Rail: Highlights of GAO Report on Need for National Policy and Strategies to Maximize Public Benefits from Federal Expenditures</title>
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<abstract>The future of intercity passenger rail service in the United
States has come to a critical juncture. The National Railroad	 
Passenger Corporation (Amtrak) continues to rely heavily on	 
federal subsidies--over $1 billion annually in recent years--and 
operating losses have remained high. In addition, Amtrak will	 
require billions of dollars to address deferred maintenance and  
achieve a &quot;state of good repair.&quot; These needs for Amtrak come at 
a time when the nation faces long-term fiscal challenges. As we  
reported in February 2005, the federal government&apos;s financial	 
condition and long-term fiscal outlook present enormous 	 
challenges to the nation&apos;s ability to respond to emerging forces 
reshaping American society, the United States&apos; place in the	 
world, and the future role of the federal government. Addressing 
the projected fiscal gaps will require policy makers to examine  
the affordability and sustainability of all existing programs,	 
policies, functions, and activities throughout the federal	 
budget. Reexamining the federal role and expenditures on	 
intercity passenger rail service will be particularly difficult  
because opinions differ about what this service should be. Some  
advocate a greatly expanded federal role and the expansion of	 
intercity passenger rail to relieve growing congestion on	 
highways and airways and (as energy prices increase) to provide  
more fuel-efficient transport; others believe the federal role	 
should be scaled back, and that at least some federal operating  
subsidies should be eliminated. Specific proposals vary--while	 
one proposal would keep Amtrak largely intact and provide more	 
funding for capital and other improvements, another proposal	 
would significantly restructure the management and accountability
for intercity passenger rail with regional, state, and local	 
entities making fundamental decisions about what intercity	 
passenger rail services are justified and will receive public	 
financial support. Amtrak itself has proposed a new vision for	 
intercity passenger rail service that would include a greater	 
role for states in planning and developing passenger rail	 
corridors. The former acting president of Amtrak told us that, in
his view, Amtrak itself is not a substitute for a national	 
intercity passenger rail policy and that Congress needs to	 
develop such a policy. One of the primary difficulties in	 
reexamining the federal role and expenditures on intercity	 
passenger rail service and developing a clear national intercity 
passenger rail policy will be reconciling the wide diversity of  
views about what this service should be and what it should	 
achieve. On November 13, 2006, we issued our most recent report  
on intercity passenger rail. The objectives of this report were  
to determine: (1) the characteristics of the current U.S.	 
intercity passenger rail system and the potential benefits	 
obtained from this system, (2) foreign experiences with passenger
rail reform and observations for the United States, (3) how well 
the United States is positioned for reforming its intercity	 
passenger rail system, (4) challenges the United States faces in 
overcoming obstacles to reform, and (5) potential options for the
future of intercity passenger rail service.</abstract>
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<identifier type="preferred citation">GAO-07-382R</identifier>
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<note>Correspondence</note>
<extension>
 <searchTitle>GAO-07-382R; Intercity Passenger Rail: Highlights of GAO Report on Need for National Policy and Strategies to Maximize Public Benefits from Federal Expenditures;
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<subject>
 <topic>Accountability</topic>
 <topic>Federal aid to railroads</topic>
 <topic>Federal funds</topic>
 <topic>Federal/state relations</topic>
 <topic>Financial analysis</topic>
 <topic>National policies</topic>
 <topic>Passengers</topic>
 <topic>Policy evaluation</topic>
 <topic>Railroad industry</topic>
 <topic>Strategic planning</topic>
 <topic>Transportation</topic>
</subject>
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