Amtrak and the 2011 Budget Cuts

Amtrak subsidies are one of the potential programs to be cut in the attempt to balance the budget (or at least reduce the debt) during 2011. Not everyone is aware that Amtrak receives money from our government. In order to understand why funding for Amtrak should continue, one must first examine the history of passenger rail service in America.

According to the Amtrak Historical Society (AHS), in the 1940s travel by air or automobile became more attractive as larger planes were built, flights became safer, and highways were extended and improved. Although legislation to build the Eisenhower Interstate System was not passed until 1955, highways such as the Pennsylvania Turnpike opened as early as 1940. Thus, stiff competition from air and car travel began to reduce the number of people who rode passenger trains. By 1965 most people did not even think of train travel as an option, since the trains were old, unreliable, and unpleasant.

In 1970 Congress took notice of the passenger train dilemma and decided to pass legislation to improve it. In October of that year, the Rail Passenger Service Act was passed and signed into law (Wikipedia). This Act created a partially private/ partially public company named Amtrak that would manage the rail system. Amtrak began operation in 1971. One of its first tasks was to determine which routes would be maintained and strengthened and which routes would be dropped. Some routes were simply uneconomic - perhaps there were not enough large cities along the route, or the cities were already connected by excellent highways. Other routes showed the potential for growth, and it was on these routes that the National Railroad Passenger Corporation (Amtrak) began a strategy of improving tracks and equipment as well as advertising (AHS).

In 1981 and 1994, Congress requested Amtrak to cut back on its use of federal subsidies and to move towards becoming self-sufficient. Neither request could be met; in fact, by 1997 Amtrak was near bankruptcy in spite of the federal funds it was receiving. In 2004, the corporation was approved for $2 million a year for up to 6 years, in order to keep it solvent (AHS). This appropriation ran out in 2010, but was replaced by $1.3 billion from the Stimulus Act (American Recovery and Reinvestment Act). The money was to be distributed over a 2 year period from 2009 to 2011 (Recovery.gov).

As mentioned above, funding for Amtrak may potentially be on the chopping block this year. However, renewed support for Amtrak will be worth more in the long run than the relatively small amount of money that would be saved. One reason for this is that Amtrak is a safer means of travel than either air or car. Second, travel by train is much more pleasant than travel by bus, plane or car. Third, Amtrak is an excellent alternative for individuals with limited means due to its low cost, pleasing conditions, and speed that either equals or exceeds that of a car, depending on the route.

According to Peter French of the Association of American Railroads, in 2006 the fatality rate for railroad passengers was comparable with that for airline passengers. This figure averages 0.5 passenger fatalities per billion passenger miles. However, due to terrorist incidents in the last 3 years, airline fatalities have increased slightly. Accidents on highways are significantly more likely, resulting in a fatality rate that was 15 to 20 times higher than that for trains in 2004 (National Highway Traffic Safety Board). Thus, riding a train is much safer than driving a car, and slightly safer than riding an airplane.

When the experiences of passengers on 4 types of transportation (train, bus, car, plane), trains are consistently rated as more pleasant than any of the other types (Askville by Amazon). Coach seats on Amtrak provide more room than buses or airplanes (and even some cars). Riding the train for short or medium distances is much less stressful than traveling any other way, since the rider can stretch out, take a nap, visit the observation car, buy food from the dining car or the cafe, and visit the restroom at any time. First class air travel is more luxurious than Amtrak, but generally much more expensive as well. The main advantage that airplanes have over buses, trains, and cars is the speed at which they travel.

The cost of train travel in the coach cars is usually low, providing an excellent travel alternative for individuals who have limited incomes or do not own their own cars (Amtrak.com). Sleeper cars for long rides are expensive, but buses, cars and planes do not have sleepers available. As stated above, riding a train is more pleasant than riding a bus; however, the limited routes of Amtrak versus those of Greyhound mean that sometimes bus travel is the only means available.

Amtrak likely has some wastage in its use of Federal funds that could be eliminated; however, if funding for passenger rails is completely cut, the mode of transportation that is safest, most enjoyable, and least costly will no longer be available to Americans.

AHS, Brief Amtrak History, 2009, http://www.amtrakhistoricalsociety.org/bah.htm

Amtrak, Reservations, http://amtrak.com

Askville by Amazon, Amtrak Experiences, http://askville.amazon.com/Amtrak-Train-Experience/AnswerViewer.do?requestId=11905923

French, Peter, U.S. Railroad Safety Statistics and Trends, 2006, http://www.drsc.org/Research/AAR_Info+Publications/PETER_FRENCH_RAIL_SAFETY_STATS_011706.pdf

NHTSA, Traffic Safety Facts 2004, Early Ed., Table 4, p. 18.

Recovery.gov, Vice President Biden, Railroad Administrator, Members of Congress Announce Funding for Amtrak in Recovery Act, 2009, http://www.recovery.gov/News/press/Pages/Friday,%20March%2013,%202009.aspx

Recovery.gov, Grants-Award Summary, National Railroad Passenger Corporation, 2010, http://www.recovery.gov/Transparency/RecipientReportedData/Pages/RecipientProjectSummary508.aspx?AwardIDSUR=43863&AwardType=Grants

Wikipedia, Amtrak, 2011, http://en.wikipedia.org/w/index.php?title=Rail_Passenger_Service_Act