Department of Transportation (DOT) announced last week that the National Railroad Passenger Corporation (Amtrak) would receive more than $1 billion in emergency funds in the wake of COVID-19 pandemic.
The funding allocation will be provided through the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Federal Railroad Administration (FRA). It will support the railroad’s activities to prevent, prepare for, and respond to the domestic spread of COVID-19 and its impacts on operations and business.
“This $1 billion in federal emergency assistance to Amtrak will help maintain service for its passengers when the economy recovers,” Secretary of Transportation Elaine L. Chao said.
Amtrak has experienced a 90 percent decline in ridership in recent weeks, in addition to a projected decline in future ticket purchases for the coming months – pulling specific routes out of service.
The CARES Act funding will be used to offset the loss of ticket revenue, buy fuel for its operations and construction materials for its projects and maintain Amtrak’s network of intercity passenger routes, including routes in rural areas that have seen total service cancellation.
“This funding will help ensure that Amtrak is able to quickly return to service supporting both the public’s transportation mobility needs and America’s economic recovery from the COVID-19 public health emergency,” FRA Administrator Ronald L. Batory said. “We are committed to transparency and are requiring enhanced reporting from Amtrak to show how the CARES Act funding is being efficiently and effectively used to respond to present challenges.”