House Transportation Committee chairman John Mica (R-FL) and Rail Subcommittee Chairman Bill Shuster (R-PA) announced that they will draw up legislation that would kill Amtrak’s desire to develop and operate high-speed rail in the Northeast Corridor:
We plan introduce legislation to separate the Northeast Corridor from Amtrak, transfer it to a separate entity, and begin a competitive bidding process that would allow for a public-private partnership to design, build, operate, maintain, and finance high-speed service. Our plan would do so in a dramatically shorter time, in closer to 10 rather than 30 years, and at a fraction of the $117 billion cost proposed by Amtrak, while creating new jobs.
Randal O’Toole says that “Rail fans feel threatened by the proposal because they know that, if the Northeast Corridor is ever spun off as a private operation, support for Amtrak subsidies in the rest of the nation will dwindle.” Not surprisingly, Amtrak booster Sen. Frank Lautenberg (D-NJ) thinks that “privatizing” the Northeast Corridor is a bad idea:
Let’s not forget: Congress created Amtrak in 1970 because the private railroads could no longer sustain inter-city passenger service on their own,” he said. “When I was building my business, I learned firsthand — if you want to be successful tomorrow, you must begin laying the foundation today. The same principle applies here. If we want to leave our children and grandchildren a better country, we must make smart investments on their behalf — and that means investing in Amtrak.
Dumping more taxpayer dollars into Amtrak will “leave our children and grandchildren” with more debt — not a better country as Lautenberg absurdly claims. And as a Cato essay onAmtrak subsidies explains, it was decades of taxes and burdensome government regulations that sped the demise of private passenger rail:Details