Congress Poised to Avoid Government Shutdown

by Sean Jeans-Gail | VP of Gov't Affairs + Policy

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Senate Minority Leader Chuck Schumer has indicated there are sufficient numbers of Democrats willing to vote “yes” to pass cloture on a budget extension. This parliamentary procedure will allow the Senate to pass a Republican-led funding bill by a simple majority, avoiding a government shutdown that was set to go into effect at midnight.

The Fiscal Year 2025 Continuing Resolution (CR), scheduled to be taken up by the Senate later today, passed along party lines out of the Republican-controlled House earlier this week. The funding bill cuts $13 billion in non-defense discretionary spending compared to FY2024 levels, while increasing defense spending by $6 billion.

What Does this Mean for Passenger Trains?

The CR continues funding for Amtrak at existing levels, allowing the railroad to continue day-to-day operations, while also overseeing project management for construction and equipment procurement efforts funded by the Infrastructure Investment and Jobs Act (IIJA).

The cuts to transportation are largely achieved by jettisoning Congressionally Directed Spending earmarks. That includes $75 million in Senate-sponsored projects funded through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant program. These earmarks mostly benefitted short-line freight rail projects, with some exceptions:

• Sen. Krysten Sinema (D-AZ) - $3.85 million for the City of Flagstaff for improvements to the Flagstaff Amtrak Station platform;
• Sen. Alex Padilla (D-AZ) - $2.9 million for the San Joaquin Regional Rail Commission for PTC installation work that will allow for expanded ACE rail service; and
• Sen. Gary Peters (D-MI) - $2 million for the City of Detroit for improvements to the Michigan Central Intermodal Passenger Station.

Potential notes of concern:

• The bill does not include language Democrats lobbied for that would’ve stipulated the Trump Administration must comply with Congressional directives over programmatic spending. This preserves the current stalemate between Congress and the White House, creating a potential exposure for previously appropriated passenger rail funds. In turn, that may be bad for a variety of projects that have already secured grants but the State has yet to receive the money from the U.S. Department of Transportation.
• The FY25 CR failed to include pro-forma language allowing the District of Columbia’s government to spend local tax revenue. This omission would mean the DC City Council will need to cut $1.1 billion from its budget, mid-year, resulting in cuts to police, fire services, public schools, charter schools, transit, and other public services. Washington Metropolitan Area Transit Authority (WMATA) would face a surprise $200 million cut to a pre-approved budget, with the agency warning of layoffs and service cuts. It’s not clear if Congress is willing to pass a legislative fix that would allow DC to spend its own taxpayers dollars to restore these services, with House Appropriations Chair Tom Cole (R-OK) telling reporters “I’m sorry if everything wasn’t perfect, and I’m sorry the Democrats weren’t on the table to talk to us, but it just is what it is.”