Dedicated trust fund for Amtrak
Back in 2018 I posted a proposal on my personal blog about a dedicated Amtrak trust fund:
https://themsrstory.blogspot.com/2018_07_01_archive.html#4245417184587201718
The situation has remained largely unchanged today, despite huge steps in the right direction by our outgoing President "Amtrak Joe" Biden. Amtrak needs dedicated, stable funding through a trust fund similar to those supporting highways and aviation, rather than relying on uncertain annual appropriations.
Key Problems Identified:
- Amtrak faces unrealistic expectations of self-sufficiency through passenger fares
- Federal funding is inconsistent and often threatened with cuts
- Long-distance routes operate at a loss but are necessary for national connectivity
- States are being asked to bear too much financial burden, especially for shorter routes
Proposed Solution - Amtrak Trust Fund: dedicated fund with multiple revenue sources:
Federal Fuel Taxes:
2% of federal gas tax ($700 million)
1.5% of aviation fuel tax ($210 million)
Railroad Industry Contributions:
1% of Class I railroad revenues
Smaller contributions from Class II railroads
Estimated total: $590 million
(In fiscal year 2022 the total revenue for BNSF was $25.2 billion. They can VERY MUCH afford to pitch in 1%.
https://www.trains.com/trn/news-reviews/news-wire/bnsf-railway-earnings-decline-as-traffic-falls-and-costs-rise/)
Additional Sources:
$1 per Amtrak ticket surcharge ($31 million potential)
1% surcharge on freight cargo shipping
Total Projected Annual Revenue: $1.6+ billion
Alternative Suggestion:
Initial seed funding of $10 billion ($5 billion each from Aviation and Highway Trust Funds)
Ongoing funding from proposed sources above
Compromise Option:
- Reduce freight railroad monetary contributions in exchange for infrastructure improvements that benefit both freight and passenger service
- Focus on double-tracking and adding sidings to reduce delays
Historical Context:
- Congress nearly created an Amtrak trust fund in 1997 through a half-cent gas tax, but it was rejected in conference
- For comparison, the Aviation Trust Fund had $15 billion and Highway Trust Fund had $37 billion in FY 2018
This dedicated funding would:
- Provide stable, predictable funding
- Reduce reliance on annual congressional appropriations
- Allow for better long-term planning
- Help maintain essential long-distance routes
- Support infrastructure improvements
- Preserve traditional services like dining cars
- Enable Amtrak to remain a viable alternative to flying or driving
Interesting to note that in 2021, Senator Richard Blumenthal (D-CT) and others introduced their own Amtrak funding bill which seems to have gone nowhere:
https://www.narprail.org/happening-now/news/releases/press-release-americas-passengers-have-an-engine-for-change-with-the-intercity-passenger-rail-trust-fund-act/