Hotline #248-A - June 25, 2002

Over the weekend, DOT Secretary Norman Mineta called an Amtrak board meeting for yesterday (Monday, June 24). This meeting took place, but was inconclusive.

Last week, it appeared that a possible impediment to Amtrak's getting a loan guarantee from the DOT involved a legal question -- Does Amtrak's request for a loan guarantee under the Railroad Rehabilitation and Improvement Financing Program qualify under the terms of that program?

However, there is also a political aspect to the DOT granting a loan guarantee. The Administration has been insisting -- at least until yesterday -- that, in return for a loan guarantee to keep Amtrak running, Amtrak agree to reforms that the Administration first articulated on June 20. These reforms were discussed on our most recent Hotline. One in particular would move towards a dismantling of the long-distance train network -- which is consistent with Mineta's previous statements about passenger rail.

Amtrak President David Gunn and the Amtrak board, for their part, appear to want to reserve adoption of any such reforms to the legislative process, and want the loan guarantee (or other funding) to keep trains running while that legislative process moves forward.

Mineta has pledged that Amtrak will not shut down, and Amtrak has welcomed that pledge. But the threat of a shutdown is not eliminated -- a loan guarantee and/or supplemental funding are still needed. In the event an agreement on a loan guarantee cannot be reached, Senate Democrats have been working to put the funding into the pending emergency supplemental appropriations bill (which President Bush has threatened to veto for other reasons).

Keep your messages of support of a nationwide service flowing to the White House, at 202/456-1111, or by e-mail.