Advertisement

Effect of Amtrak bankruptcy debated

WASHINGTON, Feb. 22 (UPI) -- Supporters of the U.S. government's passenger rail system say White House moves to bankrupt Amtrak will end national passenger rail service.

That is because Amtrak is billions of dollars in debt, the Boston Globe reported Tuesday.

Advertisement

The administration's new proposed budget includes no subsidies for Amtrak, in a calculated move to force the unprofitable company into a bankruptcy court reorganization because it could not service its huge debts.

The White House says such a process would lead to operational and financial efficiencies, but others say bankruptcy would destroy the nation's passenger rail service.

Sen. Patty Murray, D-Wash., a member of the Senate Transportation Appropriations Subcommittee, said, "Ceding control of the national railroad to a bankruptcy trustee is both reckless and irresponsible."

Ross Capon, the head of the National Association of Railroad Passengers, a lobbying group, added: "I take it as a complete nonstarter that the states would take over services that cross multiple state lines. I think it's more likely they will find a way to keep Amtrak going than they will find a way to build things from the ashes."

Advertisement

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement