# Why Was Amtrak Not Eligible to Apply for HSR Funding?



## Daniel (Sep 9, 2012)

Can someone explain to me why only states were eligible to apply for the HSR funding and Amtrak couldn't for routes outside of the Northeast? I do not see the logic in that. Can you imagine if Amtrak received some of the $10 billion for its national network, how much the system could of been improved? New equipment, new routes, in addition to an improved NE Corridor. Instead politics got in the way (WI, OH, FL) and funding was awarded haphazardly and often for no real tangible improvements. I believe that Amtrak could have spent that money in a much more meaningful way...so why did this happen?


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## PRR 60 (Sep 9, 2012)

I'll venture a couple of theories - and that is all they are: my own, biased theories:

1. DOT wanted to model the HSR program on the Interstate Highway program. With the Interstate program, the federal government served a funding, standards-setting, and coordination function. The states were responsible for building and maintaining the highways. The same sort of deal applies to HSR. The feds provide the money. The states manage the construction and then pay for operating losses.

2. DOT is providing a fixed grant. Any cost overruns are the responsibility of the states. If a $500 million grant was provided to Amtrak, and then if the cost rose to $700 million, Amtrak would not have the resources to cover that kind of increase. The feds would have to step in and make up the difference or the project would stop. (That is now a risk with the grant provided to Amtrak for the NEC improvements.)

3. DOT does not trust Amtrak. I've never gotten a sense that there is a warm and fuzzy relationship between DOT and Amtrak. Amtrak can be a difficult organization with which to do business. If they treat DOT they way they treat other businesses, I would think that DOT would have some trepidations providing large project funding to them, particularly for work on freight railroads. I have a feeling that DOT would have preferred to keep Amtrak an arm's length from direct project funding and relegate them to operation only. Circumstances ended up fouling that plan.


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## afigg (Sep 9, 2012)

I agree that a large part of the reason that Amtrak was not initially eligible for HSIPR funding is that the program was and is oriented towards grants to state governments as is done with highway and so many other grant programs. Amtrak did get $1.3 billion directly in the stimulus, so Amtrak did get a nice chunk of funds that they used for NEC projects including the Niantic River Bridge replacement, restoring Amfleets and Superliners to service, new maintenance facilities, upgrading stations for ADA compliance. That Amtrak was getting the stimulus funds may have played a role in not changing the rules in the first award rounds.

However the rules were changed and Amtrak did get $450 million of redirected FL HSR funds for the 160 mph upgrade in NJ and reconfigure the interlocking at NYP. The NEC and the Amtrak owned Keystone East and Springfield corridors also got funding in grants to the states from the $10.1 billion:

$191 million to CT combined with $284 million of CT state funds for the Springfield corridor.

$13.3 million to DE plus state funds for a 3rd track from Regan to Yard Interlocking which will fix a NEC bottleneck

$32 million to MA for PE and NEPA for South Station expansion.

$60 million to MD for PE and NEPA for B&P Tunnel Replacement (critical because it gets a long stalled process moving forward).

$22 million to MD for PE and NEPA for replacing the Susquehanna River bridge.

$9.4 million to MD for upgrades and PE & NEPA for BWI Airport station and 9 miles of 4th track.

$38 million to NJ for Final design for north Portal Bridge replacement.

$294 million to NY & LIRR for the Harold Interlocking Bypass in Queens.

$66 million total to PA for grade separation, interlocking PE/NEPA projects, upgrades to the "State interlocking" near Harrisburg which should cut 5 mins off of Keystone trip times.

$25 million to RI for 3rd track and high level platforms at Kingston station.

$10 million for FRA lead NEC wide EIS and planning.

So it is not as if the NEC has not gotten any of the $10.1 billion in HSIPR funds from the $8 billion stimulus and $2.1 billion of FY10 funds.

Unfortunately, because the Republicans in the Senate were able to stonewall passage of the FY11 budget until after the start of 2011, the House Republicans in 2011 were able to rescind $400 million from the FY10 budget and kill the $2.5 billion in HSIPR funds in the FY11 budget. If there had been another $2.9 billion of HSIPR funds to distribute, the North Portal bridge replacement, NHV-SPG corridor project, BWI Airport station rebuild & 4th track, additional Keystone East projects would all likely be fully funded.

The FRA has pulled back around $45 million that was previously obligated to WI and FL that were leftover from those HSIPR grants. I expect we will see those and some other remaining funds redistributed in the coming weeks before the end of FY12.


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## Anderson (Sep 9, 2012)

Actually, I think Amtrak _was_ eligible to apply...looking at the NY application for improvements to the upstate Adirondack line, there were checkboxes as to whether it was a state, group of states, multi-state agency, or Amtrak. Mind you, this might have just been the second round.

The other hangup, though, is that most of the funding was going to non-NEC corridors, which are legally the states' responsibility going forward.


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## Eric S (Sep 9, 2012)

Weren't the rules different between the $8 B in ARRA funds and the $2.1 B in FY2010 funds? ARRA funding (2009, awarded in early 2010) was limited to states, whereas Amtrak was also able to apply for FY2010 funding.


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## Thomas (Sep 10, 2012)

I believe in the 2nd round, Amtrak was eligible to apply for grants towards the NEC only, not for the rest of the system. Can you imagine if it were able to apply for grants nationally? Equipment and track improvements for the Desert Wind, a Dallas-Houston section of the Texas Eagle, Chicago-Florida service, most likely with several billion left over to improve the NEC and other existing services...oh what could have been.

I think allowing only states to apply was bad policy. States don't see things from a national level, just at their local level. What may be best for the region may not be the best for the nation.


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## Anderson (Sep 10, 2012)

Thomas said:


> I believe in the 2nd round, Amtrak was eligible to apply for grants towards the NEC only, not for the rest of the system. Can you imagine if it were able to apply for grants nationally? Equipment and track improvements for the Desert Wind, a Dallas-Houston section of the Texas Eagle, Chicago-Florida service, most likely with several billion left over to improve the NEC and other existing services...oh what could have been.
> 
> I think allowing only states to apply was bad policy. States don't see things from a national level, just at their local level. What may be best for the region may not be the best for the nation.


While I don't see a lot of those services happening in this context, I will agree that states have a habit of not seeing the bigger picture. One of the more interesting requests came in from Indiana, asking for money for the portion of the Michigan projects running through northern Indiana: They asked for the money, made it very clear that they were only doing this to be a "team player" with IL and MI, and made it clear that they would not match one cent of the money. Unfortunately, I don't think that either MI or IL could apply for that portion of the grant (even if MI might have been, in theory, willing to pony up a match of some sort to unclog the "traffic jam" in northern Indiana for their trains), and neither could Amtrak.


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