Amtrak Exit Déjà Vu

On June 15, House Transportation and Infrastructure Committee Chairman John Mica and Rep. Bill Shuster, Chairman of the Railroads, Pipelines and Hazardous Material Subcommittee, introduced the Competition for Intercity Passenger Rail in America Act.

Chairman Mica said: After 40 years of costly and wasteful Soviet-style operations under Amtrak, this proposal encourages private sector competition, investment and operations in U.S. passenger rail service. The legislation would force Amtrak to sell the Northeast Corridor (NEC) to the U.S. government, establish a committee to manage NEC assets, privatize NEC operations, set performance standards for a 2-hour trip from Washington, D.C. to New York City, double train frequency and require the highest level of private sector participation and financing and the lowest level of federal funding with full implementation in 10 years. The legislation also would set the ground work for privatizing what are now state-sponsored Amtrak routes as well as the Amtrak transcontinental long-distance trains.

This brings me back to the go-go 1980s, when President Reagan and Budget Director David Stockman tried to kill Amtrak. (I passed the bar and had a job…Sure was glad I didn't go to work for Amtrak; that would have been a short first real job.) That effort died in the Senate.

Then there was the Republican Revolution (version 1), the Amtrak Reform and Accountability Act of 1997 and Newt Gingrich’s proposed shuttering of Amtrak. (I had friends that went to work for Amtrak…Couldn't they see the writing on the wall?) The Amtrak Reform Council eventually recommended that Amtrak’s assets be purchased by the government, but that idea was not implemented.

Then on two separate occasions in 2003 and 2005, President George W. Bush and Transportation Secretary Norman Mineta tried to reform or abolish Amtrak. These efforts also came to nothing.

Is there a role for the private sector in the improvement of U.S. intercity passenger rail service? Almost certainly.

Is there political support for the proposition that eliminating Amtrak is the best way to improve U.S. intercity passenger rail service on the Northeast Corridor?  On four prior occasions the answer has been No.

Nossaman’s 30-plus infrastructure attorneys offer clients, colleagues, strategic partners and industry media a wealth of practical experience, insider insight and thoughtful analysis here on Infra Insight. We blog about what we know best, from industry-leading procurements to local and national policy developments that affect the market and our clients.

Stay Connected

RSS RSS Feed

Categories

Archives

View All Nossaman Blogs
Jump to Page

Nossaman LLP Cookie Preference Center

Your Privacy

When you visit our website, we use cookies on your browser to collect information. The information collected might relate to you, your preferences, or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. For more information about how we use Cookies, please see our Privacy Policy.

Strictly Necessary Cookies

Always Active

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Functional Cookies

Always Active

Some functions of the site require remembering user choices, for example your cookie preference, or keyword search highlighting. These do not store any personal information.

Form Submissions

Always Active

When submitting your data, for example on a contact form or event registration, a cookie might be used to monitor the state of your submission across pages.

Performance Cookies

Performance cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.

Powered by Firmseek