WASHINGTON -- The Senate Appropriations subcommittee on surface transportation yesterday scheduled a hearing for next week to examine Amtrak's precarious financial condition and to grill Bush administration witnesses on what they want to do about it, reports the Washington Post.

New Amtrak President David L. Gunn said last week that if the passenger railroad corporation does not get a loan of at least $200 million by the end of the month, he will be forced to begin an orderly shutdown of all Amtrak passenger service in July -- the middle of the summer tourist season. However, Amtrak's auditors have so far failed to certify Amtrak as a "going concern," which makes obtaining a bank loan extremely difficult.

The administration and members of Congress are trying to decide whether to guarantee a loan to get Amtrak to Oct. 1, the beginning of the next fiscal year. Congress is considering an appropriation of $1.2 billion to keep Amtrak going through fiscal 2003 while the government debates what to do about passenger trains in the long run.

Administration and congressional sources said the government is coming to the realization that Gunn's statement reflects reality and is not just a ploy to squeeze more money from the government. In just a month on the job, Gunn has gained a reputation as a man who does not grandstand and who probably would do exactly what he says if no money is forthcoming.

Administration political aides are said to have grown nervous about the possibility that Amtrak might shut down on President Bush's watch -- even if only briefly until emergency funding is found.

The subcommittee's chair, Patty Murray (D-Wash.), said the panel will hear Thursday from Gunn and several administration officials, including Federal Railroad Administrator Alan Rutter and Transportation Department Inspector General Kenneth Mead.

Senate sources said the committee wants to pin down the administration's position on a loan or a loan guarantee. "We need something from the administration," the source said. "The administration must take this trip with us."

The administration has been mulling a longer-range plan for passenger trains for months but so far has not announced it.