January 1, Amtrak’s Billion-Dollar Losses Persist Despite Taxpayer Funding and Biden’s Ambitious Rail Investments

A new Department of Transportation report reveals that Amtrak continues to face routine breakdowns and disruptions despite receiving billions in taxpayer funds. Since its inception in 1971, Amtrak has never made a profit and relies on taxpayer dollars to keep running, losing about $1 billion per year.

In fiscal year 2022, Amtrak’s 19,000 workers were paid an average salary of $121,000, according to documents obtained by Open the Books. “Without significant taxpayer support, Amtrak could not operate,” the House Committee on Transportation and Infrastructure stated.

The Biden administration has poured billions into Amtrak, including a $16.4 billion investment announced in November for rail system improvements in the Northeast Corridor. This funding aims to rebuild infrastructure and upgrade various systems. “If the Northeast Corridor shut down for a single day, it would cost the economy $100 million in lost productivity,” the White House said.

Additionally, the Bipartisan Infrastructure Law allocated $66 billion for rail improvements, touted as Amtrak’s “largest investment” in history. This includes $3.07 billion for the stagnating California High-Speed Rail Authority project, approved in 2008.

The White House claims that these investments will transform Amtrak into a “world-class passenger rail” experience, making it more convenient and climate-friendly than cars or planes. However, Amtrak only served about 23 million passengers in 2022, compared to 853 million passengers traveling with U.S. airlines.

From 2021 through July 2024, Amtrak experienced 333 incidents, slightly fewer than the 397 incidents during the Trump administration from 2016 to July 2020. These incidents include 66 derailments, 84 obstructions, 115 roadway crossing accidents, five fires or “violent ruptures,” and 54 “other” events since Biden took office.

Recently, a power outage disrupted service between New York and Boston, impacting all tracks between Penn Station and Union Station. Amtrak apologized for the inconvenience and offered rebooking options to affected customers.

Amtrak CEO Stephen Gardner acknowledged the frustrations caused by these disruptions and emphasized the importance of working with NJ Transit to address the issues and provide better service.

An Amtrak train derailed on Monday afternoon en route from Kansas City to Chicago due to a tree on the tracks, with no reported injuries.

Despite House Republicans proposing legislation to cut Amtrak’s funding, the Biden administration dismissed the cuts as “draconian.” Neither Amtrak nor the DOT provided a comment on the issue.

As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.

Source