Sessions: Big Bailouts for Amtrak Must End

Press Release

U.S. Congressman Pete Sessions (R-TX) has introduced legislation to end taxpayer bailouts of Amtrak's most wasteful long-distance routes. A long-time leader on Amtrak reform, Sessions on Tuesday, May 26 introduced H.R. 5377--a bill to require Amtrak to eliminate service to the long-distance routes with total direct costs exceeding more than twice total revenue.

"This Congress is running up record deficits with out-of-control spending, and Amtrak has been a patron of the taxpayer-funded gravy train for far too long," said Sessions. "Always a money-loser, Amtrak has been counting on Americans' hard-earned tax dollars to bankroll its inefficient and unsustainable business practices without definitive accountability."

In 1997, Congress passed the Amtrak Reform and Accountability Act (PL 105-134), which required Amtrak to operate without federal subsidies by 2002. Now eight years past deadline, Amtrak continues to run in the red each year, receiving over $7 Billion in taxpayer dollars in the last three years alone.

Amtrak's worst offenders are its long-distance routes (over 400 miles in length). Nearly every one of the fifteen long-distance routes operates at a loss every month--costing taxpayers $386 Million last year. For example, the Sunset Limited (New Orleans to Los Angeles ) is Amtrak's worst performing long-distance route, which put taxpayers on the hook for $27 Million last year. Eliminating service to long-distance routes with a 2-1 loss ratio would impact six of the 15 long-distance routes, according to 2009 Amtrak financial reports.

Sessions introduced the Amtrak reform bill as a member of the Republican Study Committee Sunset Caucus, which is dedicated to uncovering and eliminating government waste--working to "sunset" programs for which taxpayers should not be paying.

"Millions of businesses across America make responsible decisions to cut costs, increase efficiency, and balance the books," said Sessions. "But as long as taxpayer dollars are a safety net, Amtrak has no real incentive for improvement. My Amtrak reform legislation draws a line of accountability, forcing Amtrak to start eliminating conclusively inefficient operations. Fiscal responsibility in Washington must start somewhere, and I believe that it's past time for Congress to stop Amtrak's bailout train. American taxpayers deserve better."

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