1970s to 1990s Amtrak commenced operations in 1971 with $40 million in direct federal aid, $100 million in federally insured loans, and a somewhat larger private contribution. Officials expected that Amtrak would break even by 1974, but those expectations proved unrealistic and annual direct federal aid reached a 17-year high in 1981 of $1.25 billion.$709 million of the 1981 aid package was for operations. The remainder was capital appropriations. During the Reagan administration, appropriations were halved and by 1986, federal support fell to a decade low of $601 million, almost none of which were capital appropriations.National Railroad Passenger Corp. Statistical Appendix to Amtrak FY1995 Annual Report, 1995 Annual Report, p.1. In the late 1980s and early 1990s, Congress continued the reductionist trend even while Amtrak expenses held steady or rose. Amtrak was forced to borrow to meet short-term operating needs, and by 1995 Amtrak was on the brink of a cash crisis and was unable to continue to service its debts.National Railroad Passenger Corp. 1999 Annual Report, p.41. In response, in 1997 Congress authorized $5.2 billion for Amtrak over the next five years – largely to complete the Acela capital project – on the condition that Amtrak submit to the ultimatum of self-sufficiency by 2003 or liquidation.Amtrak Reform and Accountability Act of 1997. 105th Cong. (January 7, 1997). Congressional Budget Office. S. 738 Amtrak Reform and Accountability Act (July 22, 1997), in 104th Cong. Senate Report 105-85 (September 24, 1997). While Amtrak made financial improvements during this period, it did not achieve self-sufficiency.
1970s to 1990s Amtrak commenced operations in 1971 with $40 million in direct federal aid $100 million in federally insured loans and a somewhat larger private contribution Officials expected that Amtrak would break even by 1974 but those expectations proved unrealistic and annual direct federal aid reached a 17-year high in 1981 of $125 billion$709 million of the 1981 aid package was for operations The remainder was capital appropriations During the Reagan administration appropriations were halved and by 1986 federal support fell to a decade low of $601 million almost none of which were capital appropriationsNational Railroad Passenger Corp Statistical Appendix to Amtrak FY1995 Annual Report 1995 Annual Report p1 In the late 1980s and early 1990s Congress continued the reductionist trend even while Amtrak expenses held steady or rose Amtrak was forced to borrow to meet short-term operating needs and by 1995 Amtrak was on the brink of a cash crisis and was unable to continue to service its debtsNational Railroad Passenger Corp 1999 Annual Report p41 In response in 1997 Congress authorized $52 billion for Amtrak over the next five years – largely to complete the Acela capital project – on the condition that Amtrak submit to the ultimatum of self-sufficiency by 2003 or liquidationAmtrak Reform and Accountability Act of 1997 105th Cong (January 7 1997) Congressional Budget Office S 738 Amtrak Reform and Accountability Act (July 22 1997) in 104th Cong Senate Report 105-85 (September 24 1997) While Amtrak made financial improvements during this period it did not achieve self-sufficiency