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Amtrak’s network has not been significantly modified since Amtrak’s inception over 40 years ago, and long distance routes continually underperform, suffering from low ridership and large operating losses of roughly half a billion dollars annually. Simply put, Amtrak trains inadequately serve many rural markets while not serving many growing metropolitan areas at all. The Administration believes that restructuring the Amtrak system can result in better service (at a lower cost) by focusing trains on shorter distance (less than 750 miles) routes, while providing robust intercity bus service to currently underserved rural areas via a partnership between Amtrak and bus operators. To accomplish this transformation, the Budget provides $550 million in transitional grants as States and Amtrak begin the process to restructure the network and States prepare to incrementally take financial responsibility for the newly created State-supported routes. The Budget also provides $936 million in direct grants to Amtrak, to support investment on the Northeast Corridor and existing State-supported lines, and to assist Amtrak in this transition.

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