Amtrak Can Survive With No U.S.Subsidy, Panel Told

Transportation Secretary Elizabeth Hanford Dole today said Amtrak can survive without federal subsidies and that, while she couldn’t guarantee success, the government will work with state officials to help keep the passenger railroad system alive.

Dole, testifying before a House transportation subcommittee, said continued federal subsidies of Amtrak would cost $8 billion over the next decade.

The Administration has proposed to kill the subsidies for the next fiscal year, a move Amtrak officials say will shut down the railroad this fall.

“I want to assure Amtrak’s stakeholders that the department will work with them in their efforts to continue Amtrak services in the absence of federal subsidy,” Dole said. “We will work with state officials in implementing any reasonable plan to replace the federal government as subsidizer of Amtrak services.”

“I cannot guarantee success,” Dole said. But, she said, Amtrak can survive, provided the states and those who use the railroad pick up a greater financial burden.

Rep. James Florio (D-N.J.), chairman of the transportation panel, disputed the Administration’s position that states and the private sector will be able to keep Amtrak going without federal subsidies.

“Despite diligent efforts, I am unable to find anyone interested,” Florio said.