Tenth District Congressman Donald
M. Payne has joined with other members of Congress in urging that funds
be allocated save the National Railroad Passenger Corporation, Amtrak,
from bankruptcy. Amtrak requires funding in the amount of at least
$100 million in order to rescue it from a complete shut down in operation.
Its financial difficulty is the result of several factors, including lack
of access to private capital markets, due to barriers by the company’s
auditing agency, KPMG. Although Congress stipulated in the Amtrak
Reform and Accountability Act of 1997 that the rail company must achieve
operating self-sufficiency by the end of 2002, as of now this goal does
not appear to be reachable. New Jersey has invested over $800 million
in Amtrak’s Northeast Corridor, more than any of the other 12 states in
the region.
Payne signed a letter in support of Amtrak to key members of the House
of Representatives Committee on Appropriations asking the Committee to
appropriate $200 million dollars to the company to keep it in business.
As a follow up to the letter, Congressman Payne is supporting legislation
recently introduced that would appropriate $270 million to Amtrak.
Both the letter and the bill recommend that the money not be appropriated
in the form of a loan, rather, a grant that the company could use as collateral
for a bank loan.
Congressman Payne is committed to a complete rescue of the rail company.
“I believe that Congress should provide the much needed assistance to Amtrak.
This rail system is crucial to the transportation needs of my constituents.
Since September 11, choice in transportation has become an increasingly
central issue and Amtrak is needed to provide this transportation choice,”
said Congressman Payne.
