In 1979 Amtrak proposed discontinuing the San Joaquin as part of system-wide reductions ordered by the Carter Administration. The state of California stepped in to provide a yearly subsidy of (then) $700,000 ($ adjusted for inflation) to cover the train's operating losses, and it was retained. At the time the state asked Amtrak to add a second round trip between Oakland and Bakersfield, and to extend the service south over the Tehachapi Pass to Los Angeles. Amtrak added the second train in February 1980, but attempts to extend the train over the Tehachapi Loop failed due to Southern Pacific's opposition.