Correspondence

Pursuant to the requirements of the Fiscal Year (FY) 2006 Appropriations Act funding the Department of Transportation, the purpose of this communication is to establish an operating subsidy baseline against which Amtrak's progress will be measured. The law requires this so that we, and in turn the Department of Transportation and the Congress, will be able to determine whether and to what extent Amtrak has achieved savings as a result of operational reforms. Further, under the Act, unless we certify that Amtrak has achieved operational savings by July 1, 2006, Amtrak will be restricted from using appropriated funds to subsidize the net losses from food, beverage, and sleeper car service on any Amtrak route.