Washington, DC – The $40 billion cost to taxpayers in subsidizing Amtrak over the years will be the subject of a Transportation and Infrastructure Committee hearing on Thursday.
The Full Committee hearing, chaired by U.S. Rep. John L. Mica (R-FL), will investigate the monetary losses associated with Amtrak’s operations, explore and compare Amtrak’s level of federal subsidy with the subsidies provided to other modes of passenger transportation, and examine management deficiencies identified by the Amtrak Office of Inspector General.
Funding for Amtrak’s capital and operating expenses comes from operational revenues and appropriated funds. Amtrak’s operations have never resulted in a net profit with most of its routes losing money. The system as a whole only accounts for 0.1 percent of America’s passenger travel, but its per-ticket subsidy level is dramatically higher than other modes of transportation. Over the past 41 years, Amtrak has received nearly $40 billion dollars in taxpayer subsidies. According to a recent study comparing FY 2008 levels of federal subsidy by mode, aviation received $4.28 per passenger trip, mass transit received $0.95 per passenger, intercity commercial bus received $0.10 per passenger, and Amtrak received $46.33 per passenger.
Various factors result in Amtrak’s more than $460 million in annual operating losses, including $83 million per year in food and beverage operating losses (despite a long-standing Congressional break-even requirement), and more than $200 million annually in overtime pay (despite a Congressional cap on the amount of allowable overtime).
This will be the third in a series of Committee oversight hearings to review Amtrak operations and the need for reforms to significantly cut the unnecessarily high costs of U.S. passenger rail service. Click here for more information about Thursday’s hearing.
WHAT: Hearing of the Committee on Transportation and Infrastructure, U.S. Rep. John Mica (R-FL), Chairman
“A Review of Amtrak Operations, Part III: Examining 41 Years of Taxpayer Subsidies”
WHEN: 9:30 a.m., Thursday, September 20, 2012
WHERE: 2167 Rayburn House Office Building
Washington, D.C. 20515
A live webcast of the hearing will be available here
WITNESSES:
• Hon. Joseph Boardman, President and CEO, National Railroad Passenger Corporation (Amtrak)
• Hon. Ted Alves, Inspector General, Amtrak Office of Inspector General
• Mr. Peter Pantuso, President and CEO, American Bus Association
• Mr. Randal O’Toole, Senior Fellow, Cato Institute
• Mr. Ross Capon, Executive Director, National Association of Railroad Passengers
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