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Open Your Wallet for Boston to NY Riders - Amtrak Subsidies to Continue
As reported by the AP, Congress failed to reduce the mad subsidy it shells out to Amtrak. So, Amtrak has never operated in the black (which is the same as ALL other government rail programs), and yet they continue to get your cash, even if you don't choose to ride. You are subsidizing the rides of others, who would have to pay more if the full economic weight of Amtrak were given to Amtrak to support. If this were a market system, Amtrak would be out of business, or operating in a much different way. If it were a market system, there would also be no Constitutional questions about its existence. What's that? You haven't heard any Constitutional questions? Take that as a sign of the times for journalists and politicians. Here is the piece, from the AP:
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WASHINGTON (AP) — The House on Tuesday rejected moves by conservatives to cut taxpayer subsidies for Amtrak as backers of the money-losing passenger railroad cemented their position in the Democratic Congress.
The move came as the House easily passed a $104 billion measure funding transportation and housing programs for the budget year beginning Oct. 1. That vote was 268-153, enough to sustain a promised veto by President Bush.
The bill blends increases in housing programs aimed at the poor and disadvantaged, community development block grants popular with lawmakers and their constituents and a 4% increase for transportation programs.
The key Amtrak vote came as the House emphatically dismissed a move by Rep. Jeff Flake, R-Ariz., to eliminate Amtrak's nearly $500 million operating subsidy. The vote was 328-94. Flake argued that subsidies of more than $400 per passenger on the most inefficient money-losing routes demonstrate that cross-country train travel no longer makes economic sense.
"There is not any passenger rail system anywhere in this world that operates without some operating subsidy," countered Rep. John Olver, D-Mass., who credited Amtrak with squeezing fat from its operations. Overall, the bill contains almost $1.5 billion for Amtrak, with $925 million for capital and debt service.
FIND MORE STORIES IN: House | Congress | George W Bush | Bush administration | Amtrak
The White House has sought big cuts in Amtrak subsidies in recent years, only to be rebuffed by the GOP-controlled Congress. So it was no surprise that with Democrats now in control, Amtrak's subsidies survived.
Amtrak runs trains through almost every state, which gives it great support among lawmakers despite criticism from the Bush administration and some lawmakers over high labor costs and excessive subsidies on its cross-country trains.
The worst example, the iconic Sunset Limited train between New Orleans and Los Angeles, loses 62 cents per passenger mile, according to Amtrak's latest available monthly report. But Amtrak critic Pete Sessions, R-Texas, lost a 283-139 vote Tuesday afternoon to kill the route.
The House also voted by voice to put further roadblocks in front of a Bush administration plan to allow Mexican trucks full access to U.S. highways. The move would block the government's cross-border pilot initiative for the fiscal year beginning Oct. 1 and comes on top of restrictions imposed in May.
Opponents of allowing trucks from Mexico unfettered access to U.S. highways argue such vehicles often don't meet U.S. safety standards and would cost U.S. jobs; supporters of the idea say the initiative would save American consumers hundreds of millions of dollars.
The White House has threatened to veto the transportation and housing bill for exceeding Bush's request by $3.4 billion, and lawmakers are increasingly concerned that many if not most of the 12 annual spending measures won't get enacted into law until late in the year as part of a foot-tall omnibus bill.
But Democrats say their differences with Bush over the portion of the budget Congress passes each year is just over $20 billion, only about 2% of that so-called discretionary budget. And they say many of the increases in the pending bill are being used to reject politically unrealistic spending cuts to programs such as Amtrak, housing and community development grants.
The measure also contains almost 1,500 pet projects requested by lawmakers such as roads and bridges, as well as community development projects such as building a YMCA in Killeen, Texas, and demolishing abandoned buildings for a redevelopment project in Waterbury, Conn.
Meanwhile, the Senate began debate on a $37.6 billion measure funding the Homeland Security Department. The bill is the first appropriations measure to reach the Senate floor.
The Senate measure also faces a Bush veto threat for exceeding the White House request by $2.3 billion, most of which goes to homeland security grants to state and local governments.