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    1. Rail

    FRA makes $1 billion available to Amtrak in response to COVID-19

    April 13, 2020
    The funding is provided under the recently enacted CARES Act.
    Related To: Federal Railroad Administration (FRA)
    Amtrak
    Amtrak 5e948e2e28b32

    The Federal Railroad Administration (FRA) is making more than $1 billion available through the Coronavirus Aid, Relief and Economic Security (CARES) Act to Amtrak to support the railroad’s activities to prevent, prepare for and respond to the spread of COVID-19.

    “This $1 billion in federal emergency assistance to Amtrak will help maintain service for its passengers when the economy recovers,” said U.S. Secretary of Transportation Elaine L. Chao.

    Amtrak has experienced an unprecedented decline of more than ninety percent in ridership in recent weeks, as well as a decline in future ticket purchases for the coming months and has pulled certain routes out of service. The CARES Act funding will be used to offset the loss of ticket revenue, which is used to pay Amtrak’s employees, buy fuel for its operations and construction materials for its projects, and otherwise maintain Amtrak’s network of intercity passenger routes, including routes in rural areas that have seen total cancellation in service. Ticket revenues also fund track and infrastructure maintenance programs on Amtrak’s Northeast Corridor.

    “This funding will help ensure that Amtrak is able to quickly return to service supporting both the public’s transportation mobility needs, and America’s economic recovery from the COVID-19 public health emergency,” said FRA Administrator Ronald L. Batory. “We are committed to transparency and are requiring enhanced reporting from Amtrak to show how the CARES Act funding is being efficiently and effectively used to respond to present challenges.”

    Under the CARES Act, FRA will make or amend existing grants to Amtrak to provide a total of approximately $1.02 billion; $492,000,000 for the Northeast Corridor and $526,000,000 for the in National Network Grants, as authorized by sections 11101(a) and 11101(b) of the Fixing America’s Surface Transportation Act, the multimodal surface transportation legislation that provides statutory parameters for FRA’s execution and oversight of grant agreements with Amtrak for federal funds appropriated by Congress.

    “After Amtrak’s best year ever in 2019, this essential funding will help keep our people working during this unprecedented reduction in travel demand,” said Amtrak Senior Executive Vice President Stephen Gardner. “We thank Secretary Chao and Administrator Batory for their leadership and with this necessary financial support, we will come out of this crisis ready to continue growing ridership and improving our performance.”

    In addition, the grant will help mitigate the cost impact on America’s 28 state-supported intercity passenger rail routes, where state governments would otherwise be required to make up ticket revenue shortfalls.  At least $239 million of the funds provided will be used in lieu of any increase in states’ payments. 

    Each year, FRA executes and oversees grant agreements with Amtrak for the federal funds appropriated by Congress. In conjunction with operating revenues and funds from states, local governments and other entities, Amtrak uses federal funds for a wide range of its operating and capital activities, including a portion of its operating expenses, capital maintenance of fleet and infrastructure, capital expansion and investment programs and capital debt repayment.