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2/6/2007



Rail News: Rail Industry Trends

Bush Administration proposes $9.4 billion for federal transit program, $800 million for Amtrak in FY08


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Yesterday, the Bush Administration proposed a $67 billion fiscal-year 2008 U.S. Department of Transportation budget that includes record dollars for highway construction and safety, but fewer greenbacks for the federal transit program.

The administration recommends funding the transit program at $9.4 billion — $308 million less than the level authorized and guaranteed under the Safe, Accountable, Flexible and Efficient Transportation Equity Act – A Legacy for Users.

“This is a failure to fund nearly 18 percent of the investment authorized to build ... new projects, which are crucial to attracting new riders,” said American Public Transportation Association President William Millar in a prepared statement.

The administration also proposes to appropriate $800 million for Amtrak, down $100 million from last year’s proposal.

“They simply reduce an already comically inadequate $900 million request by $100 million, and assign the latter amount to ‘capital matching grants to states for intercity passenger-rail projects,’” said National Association of Railroad Passengers Executive Director Ross Capon.

Transit-rail proponents also were disappointed with the administration’s proposed FY2008 Department of Homeland Security budget, which would freeze funding for transit, and passenger- and freight-rail security at $175 million, the same amount Congress appropriated in FY2007. However, the budget proposal would dedicate those funds instead of designating the monies for a larger infrastructure pool as done in years past.