Introduction of the True Reinvestment for Amtrak Infrastruture in the 21st Century Act

INTRODUCTION OF THE TRUE REINVESTMENT FOR AMTRAK INFRASTRUCTURE IN THE 21ST CENTURY ACT -- (Extensions of Remarks - June 20, 2005)

SPEECH OF
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 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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