advertisement

---

Today, President Barack Obama is expected to sign the $787 billion American Economic Recovery and Reinvestment Act of 2009 (H.R. 1/S. 1) into law. The bill allocates $48 billion for transportation programs.

The big surprise: The bill includes $8 billion for high-speed and intercity passenger rail, a significant increase compared with the $2 billion originally proposed by the Senate.

"President Obama, Sen. Richard Durbin (D-Ill.) and Rep. James Oberstar (D-Minn.) were directly involved in getting the number increased," said Rick Harnish, executive director of the Midwest High Speed Rail Assocation, in a prepared statement.

Rep. John Mica (R-Fla.), who last year led an effort to open high-speed rail development to the private sector, also was pleased with the increased funding for intercity passenger rail.

"These funds have the potential to build our first high-speed rail to the United States," he said.

The legislation includes a total of $48 billion for transportation, with $8.4 billion allocated for transit projects. The transit funds include $5.5 billion for Urbanized Area Formula Grants, $690 million in Rural Area Formula Grants, $690 million in Growing States and High Density Formula Grants, $750 million for Fixed Guideway Modernization grants and $750 million for Capital Investment Grants, or New Starts.

"This groundbreaking legislation will give people expanded travel options, while creating or supporting hundreds of thousands of American jobs," said APTA President William Millar. "Setting the course for years to come, this legislation will begin to craft a greater intermodal transportation system that our nation desperately needs."

But the $8.4 billion included for transit falls short of the $12 billion originally proposed for transit programs in the House version of the bill.

"The funding is a huge shot in the arm for rail projects nationwide," according to transit-rail advocacy group the National Corridors Initiative. "Transit funding is weak, though, and operating costs are not subsidized."

Amtrak stands to gain a share of the economic stimulus package, as well, with $1.3 billion being earmarked for the national intercity passenger railroad. Of that, $850 million is allocated for capital improvements — no more of 60 percent of which can be used for the Northeast Corridor — and $450 million for capital security grants.

Meanwhile, both freight and passenger railroads could garner additional funds through two flexible funding programs. The $27.5 billion highway program includes a provision that would enable states to allocate some of the funds for rail projects that would reduce highway congestion. The legislation also includes a $1.5 billion intermodal discretionary program that could be used for highway, bridge, public transportation, passenger- and freight-rail, and port infrastructure projects.

"This bill represents a huge victory for both passenger and freight rail," said Edward Hamberger, president and chief executive officer of the Association of American Railroads. "The additional flexibility that was provided opens up the possibility for critical investment in rail projects that will improve the efficiency of our nation's freight transportation system."

Now, U.S. Department of Transportation, state leaders, freight railroads and transit agencies will be responsible for working to quickly move rail projects through the pipeline to maximize the bill's potential, according to the National Association of Rail Passengers.