he Bush administration will for the first time propose eliminating operating subsidies for passenger train operator Amtrak as part of a push to cut budget deficits, people close to the budget process said on Tuesday. President Bush's fiscal 2006 budget, which he will send to Congress on Monday, will allocate no subsidy for Amtrak to run its trains. But it will offer $360 million for maintenance on the flagship Northeast Corridor between Washington and Boston -- which Amtrak owns -- and for commuter services.
The proposal must be approved by Congress, and the administration faces a fight in getting approval for a budget that aims to nearly freeze the growth of domestic spending not tied to national defense.
An influential Democrat warned that if enacted, the Bush administration's budget would set the nation's only city-to-city passenger service "on a course to bankruptcy."
Last year, the Bush administration proposed $900 million in subsidies, but Congress increased that to $1.2 billion after the railroad said the administration's proposal would force it to shut down.
An Amtrak spokesman would not comment when asked about the possibility of the rail service losing the bulk of its federal allocation.
Sen. Patty Murray of Washington, the ranking Democrat on the appropriations subcommittee on transportation and a strong Amtrak supporter, said she was deeply concerned about the budget move. "For four years they have played budget games and fought congressional efforts to keep Amtrak afloat," Murray said. "Now, despite the fact that Amtrak has gone to great lengths to get their costs under control and run more efficiently, the president is again offering a budget that sets the rail service on a course to bankruptcy," she added.
..more at
http://news.yahoo.com/news?tmpl=story&u=/n.../bush_amtrak_dc
The proposal must be approved by Congress, and the administration faces a fight in getting approval for a budget that aims to nearly freeze the growth of domestic spending not tied to national defense.
An influential Democrat warned that if enacted, the Bush administration's budget would set the nation's only city-to-city passenger service "on a course to bankruptcy."
Last year, the Bush administration proposed $900 million in subsidies, but Congress increased that to $1.2 billion after the railroad said the administration's proposal would force it to shut down.
An Amtrak spokesman would not comment when asked about the possibility of the rail service losing the bulk of its federal allocation.
Sen. Patty Murray of Washington, the ranking Democrat on the appropriations subcommittee on transportation and a strong Amtrak supporter, said she was deeply concerned about the budget move. "For four years they have played budget games and fought congressional efforts to keep Amtrak afloat," Murray said. "Now, despite the fact that Amtrak has gone to great lengths to get their costs under control and run more efficiently, the president is again offering a budget that sets the rail service on a course to bankruptcy," she added.
..more at
http://news.yahoo.com/news?tmpl=story&u=/n.../bush_amtrak_dc