Editing Amtrak (section)

==Public funding==
[[File:AmtrakFunding.png|thumb|upright=1.5|Federal Grant Funding for Amtrak (both nominal and inflation-adjusted), 1973-2024<ref>{{cite web |title=Federal Grants to Amtrak |url=https://railroads.dot.gov/grants-loans/directed-grant-programs/federal-grants-amtrak |website=[[Federal Railroad Administration]] |access-date=January 21, 2025}}</ref>]]
Amtrak receives annual appropriations from federal and state governments to supplement operating and capital programs.
===Funding history===

====1970s to 1990s====
Amtrak commenced operations in 1971 with $40&nbsp;million in direct federal aid, $100&nbsp;million in federally insured loans, and a somewhat larger private contribution.<ref>{{cite book |last=Don |first=Phillips |editor-first=Harold A. |editor-last=Edmonson |date=1972 |title=Journey to Amtrak; The year history rode the passenger train |chapter=Railpax Rescue |location=Milwaukee, WI |publisher=Kalmbach Pub. Co. |pages=8–11}}</ref> Officials expected that Amtrak would break even by 1974, but those expectations proved unrealistic and annual direct federal aid reached a 17-year high in 1981 of $1.25&nbsp;billion.<ref>$709&nbsp;million of the 1981 aid package was for operations. The remainder was capital appropriations. {{Harvnb|Vranich|1997|p=37}}</ref> During the [[Presidency of Ronald Reagan|Reagan administration]], appropriations were halved and by 1986, federal support fell to a decade low of $601&nbsp;million, almost none of which were capital appropriations.<ref>National Railroad Passenger Corp. ''Statistical Appendix to Amtrak FY1995 Annual Report'', ''1995 Annual Report'', p.1.</ref> In the late 1980s and early 1990s, Congress continued the reductionist trend even while Amtrak expenses held steady or rose. Amtrak was forced to borrow to meet short-term operating needs, and by 1995 Amtrak was on the brink of a cash crisis and was unable to continue to service its debts.<ref>National Railroad Passenger Corp. ''1999 Annual Report'', p.41.</ref> In response, in 1997 Congress authorized $5.2&nbsp;billion for Amtrak over the next five years – largely to complete the ''Acela'' capital project – on the condition that Amtrak submit to the ultimatum of self-sufficiency by 2003 or liquidation.<ref>''Amtrak Reform and Accountability Act of 1997''. 105th Cong. (January 7, 1997). Congressional Budget Office. ''S. 738 Amtrak Reform and Accountability Act'' (July 22, 1997), in ''104th Cong. Senate Report 105-85'' (September 24, 1997).</ref> While Amtrak made financial improvements during this period,{{citation needed|date=June 2015}} it did not achieve self-sufficiency.<ref name="railroadingscuts" />

====2000s====
[[File:NCF59.jpg|thumb|right|Amtrak's ''[[Piedmont (train)|Piedmont]]'' near [[Charlotte, North Carolina]], with a state-owned locomotive. This route is run under a partnership with the [[North Carolina Department of Transportation]], 2003]]
[[File:Amtrak Cascades Talgo trainset near Brackett's Landing in Edmonds, WA.jpg|thumb|[[Amtrak Cascades|Amtrak ''Cascades'']] service with tilting [[Talgo]] trainsets in [[Edmonds, Washington]], 2025]]
In 2004, a stalemate in federal support of Amtrak forced cutbacks in services and routes as well as the resumption of deferred maintenance. In fiscal 2004 and 2005, Congress appropriated about $1.2&nbsp;billion for Amtrak, $300&nbsp;million more than President [[George W. Bush]] had requested. However, the company's board requested $1.8&nbsp;billion through fiscal 2006, the majority of which (about $1.3&nbsp;billion) would be used to bring infrastructure, rolling stock, and motive power back to a state of good repair. In Congressional testimony, the DOT Inspector General confirmed that Amtrak would need at least $1.4&nbsp;billion to $1.5&nbsp;billion in fiscal 2006 and $2&nbsp;billion in fiscal 2007 just to maintain the status quo. In 2006, Amtrak received just under $1.4&nbsp;billion, with the condition that Amtrak would reduce (but not eliminate) food and sleeper service losses. Thus, dining service was simplified and now requires two fewer on-board service workers. Only ''[[Auto Train]]'' and ''[[Empire Builder]]'' services continue regular made-on-board meal service. In 2010 the Senate approved a bill to provide $1.96&nbsp;billion to Amtrak, but cut the approval for high-speed rail to a $1&nbsp;billion appropriation.<ref name="railroadingscuts" />

State governments have partially filled the breach left by reductions in federal aid. Several states have entered into operating partnerships with Amtrak, notably California, Pennsylvania, Illinois, Michigan, Oregon, Missouri, [[Washington (state)|Washington]], North Carolina, Oklahoma, Texas, Wisconsin, Vermont, Maine, and New York, as well as the Canadian province of [[British Columbia]], which provides some of the resources for the operation of the ''[[Amtrak Cascades|Cascades]]'' route.

With the dramatic rise in gasoline prices during 2007–08, Amtrak saw record ridership.<ref>{{cite news|first=Sarah |last=Karush |title=Amtrak announces record annual ridership |url=http://ap.google.com/article/ALeqM5ioQ136um4OUemAM70x_Q0BhuSMYgD93NRBGG0 |agency=Associated Press |location=Washington, D.C. |date=October 10, 2008 |access-date=October 27, 2008 |archive-url=https://web.archive.org/web/20081028200106/http://ap.google.com/article/ALeqM5ioQ136um4OUemAM70x_Q0BhuSMYgD93NRBGG0 |archive-date=October 28, 2008 |url-status=dead}}</ref> Capping a steady five-year increase in ridership overall, regional lines saw 12% year-over-year growth in May 2008.<ref>{{cite news |first=Jason |last=Szep |author2=Eric Beech |title=Factbox: Amtrak gets a surge in riders |url=http://uk.reuters.com/article/oilRpt/idUKN1040708220080611?sp=true |work=Reuters |date=June 11, 2008 |access-date=June 14, 2008 |archive-date=December 7, 2008 |archive-url=https://web.archive.org/web/20081207204752/http://uk.reuters.com/article/oilRpt/idUKN1040708220080611?sp=true |url-status=dead}}</ref> In October 2007, the [[United States Senate|Senate]] passed S. 294, the Passenger Rail Improvement and Investment Act of 2007 (70–22), sponsored by Senators [[Frank Lautenberg]] and [[Trent Lott]]. Despite a veto threat by President Bush, a similar bill passed the House on June 11, 2008, with a veto-proof margin (311–104).<ref>{{cite news|first=Sarah |last=Karush |title=Amtrak funding bill approved by House |url=http://www.baltimoresun.com/news/nation/bal-amtrak0611,0,2335081.story |agency=Associated Press |date=June 11, 2008 |newspaper=Baltimore Sun |access-date=June 14, 2008}}{{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref> The final bill, spurred on by the [[2008 Chatsworth train collision|September 12 Metrolink collision]] in California and retitled [[Passenger Rail Investment and Improvement Act of 2008]], was signed into law by President Bush on October 16, 2008. The bill appropriates $2.6&nbsp;billion a year in Amtrak funding through 2013.<ref>{{cite news |first=Steve |last=Hymon |title=Bush signs rail safety and Amtrak bill |url=http://latimesblogs.latimes.com/bottleneck/2008/10/bush-signs-rail.html |work=Los Angeles Times| date=October 16, 2008 |access-date=October 27, 2008 |archive-url=https://web.archive.org/web/20081025083820/http://latimesblogs.latimes.com/bottleneck/2008/10/bush-signs-rail.html| archive-date=October 25, 2008 |url-status=live}}</ref>

====2010s====
Amtrak points out that in 2010, its farebox recovery (percentage of operating costs covered by revenues generated by passenger fares) was 79%, the highest reported for any U.S. passenger railroad.<ref>{{cite web|title=Basic Amtrak Facts |url=http://www.amtrak.com/servlet/ContentServer?c=Page&pagename=am%2FLayout&cid=1246041980246 |website=Amtrak |access-date=July 30, 2012|url-status=dead|archive-url=https://web.archive.org/web/20120726041325/http://www.amtrak.com/servlet/ContentServer?c=Page&pagename=am%2FLayout&cid=1246041980246|archive-date=July 26, 2012}}</ref> This increased to 94.9% in 2018.<ref name="FY18 profile" />

Amtrak has argued that it needs to increase capital program costs in 2013 in order to replace old train equipment because the multi-year maintenance costs for those trains exceed what it would cost to simply buy new equipment that would not need to be repaired for several years. However, despite an initial request for more than $2.1&nbsp;billion in funding for the year, the company had to deal with a year-over-year cut in 2013 federal appropriations, dropping to under $1.4&nbsp;billion for the first time in several years.<ref name="FY13 business plan" /> Amtrak stated in 2010 that the backlog of needed repairs of the track it owns on the Northeast Corridor included over 200 bridges, most dating to the 19th century, tunnels under Baltimore dating to the [[American Civil War]] era and functionally obsolete [[Railroad switch|track switches]] which would cost $5.2&nbsp;billion to repair (more than triple Amtrak's total annual budget).<ref name="FY13 business plan" /> Amtrak's budget is only allocated on a yearly basis, and it has been argued by Joseph Vranich that this makes multi-year development programs and long-term fiscal planning difficult if not impossible.<ref name="Vranich 2004" />{{page needed|date=July 2015}}

In Fiscal Year 2011, the U.S. Congress granted Amtrak $563&nbsp;million for operating and $922&nbsp;million for capital programs.<ref>{{cite web|last=U.S. Conference of Mayors |title=III. Transportation |url=http://www.usmayors.org/cdbg/documents/FY11-FinalAppropriations.pdf |archive-url=https://web.archive.org/web/20110419232907/http://www.usmayors.org/cdbg/documents/FY11-FinalAppropriations.pdf |url-status=dead |archive-date=April 19, 2011 |work=Fiscal Year 2011 Appropriations (HR 1473) |publisher=U.S. Conference of Mayors |access-date=July 30, 2012}}</ref>

====2020s====
In 2021, the [[117th United States Congress]] passed and President [[Joe Biden]] signed the [[Infrastructure Investment and Jobs Act]], which directly appropriated $66 billion for rail over a five-year period, of which at least $18 billion is designated for expanding passenger rail service to new corridors, and it authorized an additional $36 billion. Amtrak received $22 billion in advance appropriations and $19 billion in fully authorized funds.<ref name="FRA 2021">Refer to infographic PNG. {{cite web | title=FRA | website=Bipartisan Infrastructure Law Information from FRA | date=November 15, 2021 | url=https://railroads.dot.gov/BIL | access-date=July 11, 2023 | archive-date=July 11, 2023 | archive-url=https://web.archive.org/web/20230711115955/https://railroads.dot.gov/BIL | url-status=live }}</ref>

===Controversy===
Government aid to Amtrak was controversial from the beginning. The formation of Amtrak in 1971 was criticized as a bailout serving corporate rail interests and union railroaders, not the traveling public. Critics have asserted that Amtrak has proven incapable of operating as a business and that it does not provide valuable transportation services meriting public support,<ref name="Vranich 2004" />{{page needed|date=July 2015}} a "mobile money-burning machine".<ref>Wicker, Tom. ''In the Nation; Young David's Tantrum.'' ''The New York Times'', p. A31 (May 3, 1985)</ref> Many fiscal conservatives have argued that subsidies should be ended, national rail service terminated, and the NEC turned over to private interests.<ref>Frailey, Fred W. ''Can Amtrak Survive the Budget Cutters?'', ''U.S. News & World Report'', p. 52 (April 13, 1981).</ref> Critics also question Amtrak's energy efficiency,<ref>{{cite web|url=https://www.newsweek.com/will-why-liberals-love-trains-68597|title=Will: Why Liberals Love Trains|first=George F. |last=Will|date=February 27, 2011|website=Newsweek|access-date=May 20, 2020|archive-date=July 24, 2019|archive-url=https://web.archive.org/web/20190724015735/https://www.newsweek.com/will-why-liberals-love-trains-68597|url-status=live}}</ref> though the [[United States Department of Energy|U.S. Department of Energy]] considers Amtrak among the most energy-efficient forms of transportation.<ref>{{cite web|url=http://www.amtrak.com/servlet/ContentServer?pagename=Amtrak/am2Copy/Title_File:_Copy_Page&cid=1093554056875&c=am2Copy&ssid=565 |title=Inside Amtrak – News & Media – Energy Efficient Travel |website=Amtrak |access-date=January 20, 2009 |archive-url=https://web.archive.org/web/20071212012051/http://www.amtrak.com/servlet/ContentServer?pagename=Amtrak%2Fam2Copy%2FTitle_File%3A_Copy_Page&cid=1093554056875&c=am2Copy&ssid=565 |archive-date=December 12, 2007 |url-status=dead}}</ref>

The Rail Passenger Service Act of 1970, which established Amtrak, specifically states that, "The Corporation will not be an agency or establishment of the United States Government".<ref>{{cite web |author=((91st Congress of the United States of America)) |title=Rail Passenger Service Act of 1970: Section 301: Creation of the Corporation |url=http://history.amtrak.com/archives/rail-passenger-service-act-of-1970 |website=United States Government |access-date=July 30, 2012 |archive-date=August 6, 2012 |archive-url=https://web.archive.org/web/20120806034240/http://history.amtrak.com/archives/rail-passenger-service-act-of-1970 |url-status=live}}</ref> Then [[common stock]] was issued in 1971 to railroads that contributed capital and equipment; these shares convey almost no benefits,<ref>{{cite web |url=http://www.cbo.gov/doc.cfm?index=4571&type=0&sequence=6 |title=The Past and Future of U.S. Passenger Rail Service (sec. 4 n.21) |date=September 2003 |website=[[Congressional Budget Office]] |access-date=November 14, 2008 |archive-date=November 13, 2008 |archive-url=https://web.archive.org/web/20081113102622/http://www.cbo.gov/doc.cfm?index=4571&type=0&sequence=6 |url-status=dead}}</ref> but their holders<ref>{{cite web |url=http://www.house.gov/transportation/rail/04-30-03/04-30-03memo.html |title=Subcommittee on Railroads Hearing on Current Amtrak Issues |date=April 30, 2003 |website=U.S. House of Representatives |archive-url=https://web.archive.org/web/20061110231722/http://www.house.gov/transportation/rail/04-30-03/04-30-03memo.html |archive-date=November 10, 2006}}</ref> declined a 2002 buy-out offer by Amtrak. There are currently{{When|date=January 2024}} 109.4 million shares of preferred stock, at a par value of $100 per share, all held by the US government. As of February 2015, there were 9.4 million shares of common stock, with a par value of $10 per share, held by [[American Premier Underwriters]] (53%), [[BNSF]] (35%), [[Canadian Pacific]] (7%) and [[Canadian National]] (5%).<ref>{{cite web |first1=Joseph |last1=Vranich |first2=Cornelius |last2=Chapman |first3=Edward L. |last3=Hudgins |name-list-style=amp |date=February 8, 2002 |title=A Plan to Liquidate Amtrak |website=Cato Institute |url=http://object.cato.org/sites/cato.org/files/pubs/pdf/pa425.pdf |access-date=October 12, 2013 |archive-date=October 15, 2013 |archive-url=https://web.archive.org/web/20131015233804/http://object.cato.org/sites/cato.org/files/pubs/pdf/pa425.pdf |url-status=live}}</ref><ref>[https://drive.google.com/file/d/1xlYelsGU4kEN7lh1UqVxfG7o3xq9_rhn/view?usp=sharing Amtrak Freedom of Information Act (FOIA) that list complete number of Amtrak issued Common and Preferred stock shares and shareholders] Retrieved on May 27, 2022{{dead link|date=November 2022}}</ref><ref>[https://web.archive.org/web/20230430091700/https://www.railwayage.com/news/fini-to-saga-of-amtraks-common-stock/ Fini to saga of Amtrak's common stock] ''[[Railway Age]]'' February 26, 2015</ref>