Lawmakers Say Congress Won't Liquidate Amtrak

WASHINGTON -- A bipartisan group of U.S. senators pledged on Monday to block any attempt to liquidate Amtrak, calling on the White House to assure the passenger rail service's creditors that dissolution was not an option, reports a wire service.

Twenty-one lawmakers, mainly from the Northeast where Amtrak has its most successful route, wrote to President Bush (news - web sites) that the railroad's credit has been badly damaged since a congressionally appointed board that oversees its finances recommended earlier this month that Amtrak be restructured or liquidated.

While liquidation has been played down as an option among rail proponents, the Bush administration has yet to throw its support behind Amtrak, saying it will unveil a high-speed rail plan in its budget proposal early next year.

The Transportation Department has not made it clear whether Amtrak will be a part of that plan.

Senate lawmakers reminded the White House, however, that liquidation would not happen without their support and they were not about to give it.

"Amtrak cannot be liquidated without the Senate's approval, and we will oppose any effort to do so," the lawmakers said in the letter dated Nov. 16 but released on Monday. "We hope you will join with us in reassuring Amtrak's creditors that liquidation is not an option."

The Amtrak Reform Council found on Nov. 9 that the railroad would not meet its congressional mandate of operating without federal subsidies by the end of next year. Council members voted 6-5 to either restructure the 30-year-old railroad or liquidate it.

While the reform council will propose a restructuring plan in the coming months and Amtrak will draw up a liquidation formula, Congress will have the final say on what will happen to Amtrak.

It could choose to ignore both restructuring or liquidation and keep it functioning, at least temporarily, as it is now. Amtrak received a $521 million federal operating subsidy this fiscal year.

"Amtrak's passenger rail service is an essential link in our transportation system -- and a strategic asset during times of national emergency," the letter to Bush said.

The Senate Commerce Committee has approved legislation that would provide $1.77 billion for Amtrak's security needs, and the Finance Committee has approved a bill that would provide $9 billion in bonding authority for new passenger rail corridors.

Amtrak's near-term future, at least, will be determined when Congress takes up the railroad's reauthorization early next year.