House Transportation Committee Previews Rail Agenda

by Sean Jeans-Gail | VP of Policy + Gov't Affairs

The House Transportation & Infrastructure Subcommittee on Railroads held its inaugural hearing yesterday, taking a broad look at the freight and passenger rail industry and spotlighting priorities for the upcoming surface transportation reauthorization.

Congressman Daniel Webster (R-FL), the newly appointed chair of the rail subcommittee, opened the hearing by stressing the need to maintain high levels of safety in the rail industry. Unfortunately, he also used his statement to resuscitate flawed arguments about the need for Amtrak to reorganize its operations and network in order to make a profit.

“Passenger rail works best where demand is high, competition and private sector involvement are ample, and a dependence on government support is low,” said Chairman Webster. “For Amtrak, we must look at improving and maintaining its existing network, weaning it off government support, and providing competitive, reliable, and safe service to attract riders. Amtrak should serve as an appealing option for travel, not as a replacement for vehicles and airplanes, which remain the overwhelming preference for Americans.”

Rail Passengers has long argued that it’s not about whether a passenger rail route makes money, it’s about who makes money from a particular route. Trains are part of the category of public services that make money by acting as economic engines in the communities they serve—no different than roads, utilities, and other publicly-sponsored infrastructure.

Thankfully, Congressman Seth Moulton (D-MA) was on hand to point out that highways are heavily subsidized, having received $275 billion in general fund transfers at the federal level since 2008.

“Mr. Chairman… you talked about decreasing dependence on government funding for railroads. It’s interesting that you don’t talk about decreasing dependence on government funding for highways or airlines. We’ve subsidized highways and airlines to the tune of… hundreds of billions of dollars over the decades,” said Congressman Moulton. “It’s interesting that the freight railroad system is asked to compete against this heavily subsidized alternative. Freight railroads are really the only transportation system in America that funds its own infrastructure through private sector, right? President Trump has instituted this new department of government efficiency; I think the idea is that the government should invest in efficiency, and perhaps not subsidize inefficiency. So if the only transportation system efficient enough to pay for its own infrastructure is freight rail, then why do we continue spending billions and billions of taxpayer dollars every year subsidizing highways and truckers?

“You also mentioned, Mr. Chairman, that Amtrak should be off government support,” continued Congressman Moulton. “But you didn’t mention that our highways should be off government support, or that our airlines should be off government support. It’s an interesting contrast.”

Congressman Moulton went on to discuss how America is the only developed country not investing in high-speed rail. The full exchange is worth listening to, and we’ve included a link below.

Questions Over Trump Administration’s Executive Order on Infrastructure Payments

Many of the members of the Committee highlighted concerns over a day-one Executive Order issued by the White House that directed agencies to immediately pause the disbursement of funds appropriated through the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA). The executive order paused the distribution of billions of dollars in payments for all manners of infrastructure outlays, including highway and rail projects.

A clarification issued by the Office of Management and Budget a day later clarified little. Because the clarification stated that the executive order was only meant for Green New Deal funds—which is a Democrat-led messaging campaign and not an actual piece of legislation—many questions remain.

Congressman Rick Larsen (D-WA), Ranking Member for the full T&I Committee, criticized the executive order for halting the disbursement of critical infrastructure funds.

“The [Bipartisan Infrastructure Law] provided transformational funding for passenger rail…” said Congressman Larsen. “For the first time since the founding of Amtrak, intercity rail has guaranteed funding—five years of advance appropriations that allows Amtrak to address decades of deferred maintenance and begin construction on long-delayed capital projects. Before the BIL, Amtrak would have to wait until Amtrak completed the annual appropriations process to find out its operating and capital budgets—that is no way to run a railroad. The BIL has invested nearly $53 billion for 594 projects to improve rail safety and expand passenger rail travel nationwide.”

Congressman Andre Carson (D-IN) also highlighted that the halt in infrastructure disbursements would come at an awkward time, as state transportation agencies are currently signing contracts and staffing up in preparation for the start of construction season in the spring.

Rail Passengers Association issued a letter to the White House this week, calling for IIJA funds to be released and for work to resume on these critical rail projects.

“These grants are located in almost every state in the nation, from Florida to Alaska,” wrote Rail Passengers President & CEO Jim Mathews. “They will benefit millions of Americans, in big cities and small towns, urban neighborhoods and rural communities, Red States and Blue. The vast majority of the rail projects in question required state and local governments to provide local funding matches to secure these grants. Delaying disbursements will not only endanger tens of thousands of construction jobs, it will introduce costly delays, which will likely be borne by local governments.”

Please join us in asking the White House and Congress to restart these important rail projects here. It only takes a few minutes to make your voice heard!

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