Amtrak’s financial condition has been deteriorating over recent years. Public Benefits of Intercity Passenger Rail Service May Exist in Certain Markets

Intercity passenger rail has the potential to generate benefits to society (often called public benefits) by complementing other more heavily used modes of transportation in markets in which rail transport can be competitive. These possible benefits include reduced highway and air travel congestion, pollution, and energy dependence; increased safety; and an option for travelers to use passenger rail systems in the future. Like Other Modes, Intercity Passenger Rail Requires Substantial Investment

Intercity passenger rail systems, like other intercity transportation systems, are expensive to build, maintain, and operate. However, according to a preliminary Amtrak estimate, the capital costs to fully develop the federally designated high-speed rail corridors and the Northeast Corridor could be $50 billion to $70 billion over 20 years. As Congress debates a transformation of intercity passenger rail, including whether continued direct federal government support is warranted, initial considerations that could be of use are (1) establishing clear, non- conflicting goals for federal support for intercity passenger rail systems; (2) establishing the roles of governmental and private entities and developing funding approaches that focus on and provide incentives for results and accountability; and (3) ensuring that the strategies developed address diverse stakeholder interests, to the extent possible, and limit unintended consequences.
What GAO Found

Because of Amtrak's worsening financial condition, there is growing agreement that the current mission, funding, and structure for providing intercity passenger rail needs to be changed. Intercity passenger rail has the potential to complement other more heavily used modes of transportation in markets where rail transport can be competitive. The potential benefits include reduced air and highway congestion, reduced pollution caused by automobiles, reduced fuel consumption and energy dependency, and greater safety. Intercity passenger rail systems, like other intercity transportation systems, are expensive. Amtrak has called for $30 billion in federal capital support over 20 years to upgrade its operations and to invest in high-speed rail corridors. Amtrak also estimates that the cost to fully develop the 10 federally designated high-speed rail corridors and Amtrak's Northeast Corridor could exceed $50 billion over 20 years. Congress must determine if and how intercity passenger rail fits into the nation's transportation system. and what level of federal investment should be made in light of other competing national priorities. Key initial steps in this framework could include (1) establishing clear, non-conflicting goals for federal support of intercity passenger rail systems; (2) establishing the roles of governmental and private entities and developing funding approaches to provide incentives for results and accountability; and (3) ensuring that the strategies developed address stake holder interests and limit unintended consequences.