late last week the U.S. Senate approved a bi-partisan amendment restoring Amtrak's proposal for $1.2 billion in subsidies this fiscal year. Republican Senate leaders had attempted to cut the funding request by roughly a third.

The amendment sets up a battle with the House of Representatives, which wants to cut Amtrak's federal subsidy to $762 million, and the White House. President George W. Bush's administration has strongly opposed the $1.2 billion subsidy request that Amtrak president David Gunn says is needed to avert a possible shutdown this spring.

Gunn warned on last wednesday that Amtrak would begin an orderly shutdown of service this spring if Amtrak was forced to accept less than the $1.2 billion he said was necessary to maintain operations.

Senior Transportation Department officials met with commuter rail operators in Washington on last Thursday to discuss the Amtrak funding situation.

Federal Railroad Administration chief Allan Rutter told the railroad executives the the Bush administration has "consisitently cautioned" Amtrak to develop contingencies in the event Congress appropriated less than was requested.

"Yet despite that caution and the administration's ongoing opposition to a $1.2 billion operating, Amtrak operations continue at this spendign level," Rutter the Reuters news agency.

The Bush administration is crafting a long-term inter-city passenger rail plan that would mandate Amtrak business reforms, make states pay more for intercity service, and open some Amtrak routes to private competition.

Since Gunn took over Amtrak last spring, he has instituted a number of reforms, eliminated unprofitable business ventures, cut staff, and found other cost savings.

"He has increased efficiently rather dramatically," Said Sen. John McCain (R-Ariz.), a vocal Amtrak critic. "We have every right to expect reform."