Congressional supporters and opponents of Amtrak both reacted skeptically Thursday to the George W. Bush administration's agreement to keep the railroad running through September with short-term loans. Both sides expressed concern that another shutdown threat had simply been deferred until next year.
David Gunn, the president of Amtrak, said it was not even clear that an imminent shutdown had been prevented, because the railroad and the administration had still not reached final agreement. Gunn said the administration was still insisting on internal changes and other terms that were unacceptable to Amtrak. But, he said, he is "reasonably hopeful" the deal will come together in the next few days.
The plan, announced late Wednesday, would provide Amtrak US$100 million in an immediate loan from the US Treasury and would then require Congress to approve another loan, of at least US$100 million, within weeks. While congressional leaders said the second loan would probably be approved, given the administration's support, there was no agreement on how much Amtrak would receive in the next fiscal year, beginning on Oct. 1.
"I think it's important to note this will be one in a long series of bailouts we have given to Amtrak since 1971," said Senator John McCain, long critical of the railroad's three decades of losses and taxpayer subsidies. "While no one is interested in having Amtrak shut down, the real question is, `Will we be back here in two, three or four years with another bailout?'"
Senator Patty Murray, who supports the railroad, said the next moment at the brink could be even sooner than that. The administration's plan would keep the trains running with loans that will have to be paid back from next year's routine appropriation, Murray said, but the White House has not agreed to give Amtrak an amount even close to its request in next year's budget. Thus the bailout could hurt Amtrak even more in the long term, she said.
The administration's case was further hampered by a confused and constantly shifting explanation of the bailout plan.
At a hearing this morning before a Senate transportation subcommittee, the secretary of transportation, Norman Mineta, did not seem to know the details he had negotiated with Amtrak over the last three days. Mineta gave several answers about what program the first of the two loans would come from.
He also told the subcommittee at first that the administration wanted Congress to appropriate a grant for Amtrak, but then, under questioning by Murray, corrected himself and said Congress should approve a loan.
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