Amtrak Cuts Are $2 Billion Bomb on 'Flyover Country'

For Immediate Release (20-10)

Contact: Sean Jeans-Gail (202) 320-2723; [email protected]

Washington, DC—Rail Passengers Association’s President and CEO Jim Mathews testified today regarding Amtrak’s response to COVID-19 at a hearing held by the House Transportation & Infrastructure Subcommittee on Railroads and Pipelines. During the hearing, Mathews presented new research showing that Amtrak’s plan to reduce service on its long-distance routes—a vital transportation link to the 40 percent of the nation’s small and rural communities that it serves—will drop "a $2 billion bomb on “Flyover Country.”

Amtrak received emergency coronavirus funding as part of the CARES Act passed in March. The legislation expires on September 30th and, absent any action by Congress on another relief package, Amtrak says it will cut service to three times per week on 12 of its 15 long-distance routes to reduce its operating costs.

While the cuts will save Amtrak money, they will cost the U.S. economy. Rail corridors generate value by acting as economic engines in the communities they serve—through jobs, retail, reduced road traffic and accidents, tourism and real-estate development.

“[Rail Passengers Association has] modeled a preliminary, high-level analysis of the economic consequences of Amtrak’s decision to cut its daily intercity passenger services back to only three runs per week,” said Mathews in his testimony. “Unfortunately, even the most conservative assessment is dire: to save $213 million, Amtrak's nine months of daily service cuts could drop at least a $2.3 billion bomb on Flyover Country, a figure that could rise above $3 billion if the cuts remain in place for the full year.”

Even Amtrak’s thrice weekly service proposal depends on supplementary funding from Congress, and Mathews stressed that failing to provide any financial relief for the railroad would result in an even more disastrous outcome for the U.S. transit network.

“I understand well that Amtrak faces real and difficult choices, and that without financial aid there are far greater risks to the network than thrice weekly service for long-distance routes—we could lose entire corridors, permanently,” said Mathews.

“Amtrak is a taxpayer-supported public service. Its object is not profit, but to serve the Nation,” Mathews concluded. “It cannot fulfill its mandate by cutting service for half the country during one of the most severe economic crises our nation has experienced and during a pandemic that has made air travel a perilous gamble for millions of Americans. Our Association, our 28,000 members and the millions of American passengers call upon Congress to provide Amtrak with the necessary financial relief to operate a full network in this pandemic, and to include safeguards for all Amtrak-served communities and Amtrak workers facing cutbacks and furloughs."

Economic Impact of 3x Amtrak Service – By Route

City of New Orleans: Illinois – Kentucky – Tennessee – Mississippi – Louisiana

Today’s Service

• Direct Economic Benefits: $54.2 million
• Indirect Economic Benefits: $79.7 million
• Total Annual Benefits: $133.8 million

Economic Losses to Served Communities of 3x Service

• Direct Losses: $35.6 million
• Indirect Losses: $52.3 million
• Total Impact (adjusted to nine months): $66.0 million

Empire Builder: Illinois – Wisconsin – Minnesota – North Dakota – Montana – Idaho – Washington State – Oregon

Today’s Service

• Direct Economic Benefits: $241.0 million
• Indirect Economic Benefits: $354.2 million
• Total Annual Benefits: $595.2 million

Economic Losses to Served Communities of 3x Service

• Direct Losses: $158.3 million
• Indirect Losses: $232.8 million
• Total Impact (adjusted to nine months): $293.3 million

Silver Services: New York – New Jersey – Pennsylvania – Delaware – Maryland – Washington, D.C. – Virginia – North Carolina – South Carolina – Georgia – Florida

Today’s Service

• Direct Economic Benefits: $154.6 million
• Indirect Economic Benefits: $227.2 million
• Total Annual Benefits: $381.8 million

Economic Losses to Served Communities of 3x Service

• Direct Losses: $101.6 million
• Indirect Losses: $149.3 million
• Total Impact (adjusted to nine months): $188.2 million

Southwest Chief: Illinois – Missouri – Kansas – Colorado – New Mexico – Arizona – California

Today’s Service

• Direct Economic Benefits: $196.3 million
• Indirect Economic Benefits: 288.5 million
• Total Annual Benefits: $484.8 million

Economic Losses to Served Communities of 3x Service

• Direct Losses: $129.0 million
• Indirect Losses: $189.6 million
• Total Impact (adjusted to nine months): $239.0 million

Texas Eagle: Illinois – Missouri – Arkansas – Texas – New Mexico – Arizona – California

Today’s Service

• Direct Economic Benefits: $224.8 million
• Indirect Economic Benefits: $330.5 million
• Total Annual Benefits: $555.3 million

Economic Losses to Served Communities of 3x Service

• Direct Losses: $147.7 million
• Indirect Losses: $217.2 million
• Total Impact (adjusted to nine months): $273.7 million

Crescent: New York – New Jersey – Pennsylvania – Delaware – Maryland – Washington, D.C. – Virginia – North Carolina – South Carolina – Georgia – Alabama – Mississippi – Louisiana

Today’s Service

• Direct Economic Benefits: $94.3 million
• Indirect Economic Benefits: $138.6 million
• Total Annual Benefits: $232.8 million

Economic Losses to Served Communities of 3x Service

• Direct Losses: $ 61.9 million
• Indirect Losses: $ 91.1 million
• Total Impact (adjusted to nine months): $114.8 million

For more details, see Mathews’ full testimony.

About Rail Passengers Association

The Rail Passengers Association is the oldest and largest national organization serving as a voice for the more than 40 million rail passengers in the U.S. Our mission is to improve and expand conventional intercity and regional passenger train services, support higher speed rail initiatives, increase connectivity among all forms of transportation and ensure safety for our country's trains and passengers. All of this makes communities safer, more accessible and more productive, improving the lives of everyone who lives, works and plays in towns all across America.

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