Amtrak, White House Reach Tentative Deal
Legislators Want $205M In Loan Guarantees
Posted: 10:07 a.m. EDT June 26, 2002
Updated: 9:22 p.m. EDT June 26, 2002
WASHINGTON -- There's been salvation for Amtrak -- at least for now.
Amtrak and the Bush administration have reached a tentative agreement, resolving the budget crisis that could have shut down the national passenger railroad next week.
Federal officials report "excellent progress" in their discussions on how to help the railroad close its $200 million budget shortfall.
Transportation Secretary Norman Mineta and Amtrak's chairman, John Robert Smith, say there are still significant details to work out, and no final agreement yet.
But they said with "with congressional support, Amtrak services will not be disrupted."
Amtrak is looking to the Bush administration and Congress for help in averting a shutdown.
The proposed deal would include immediate financial assistance from the Transportation Department -- to keep the trains running -- and a request to Congress for action as well. It's Congress that has the power to appropriate money for the railroad.
Mineta had said Tuesday that a solution to Amtrak's money woes was "very, very close."
He said that Amtrak may have to cut its budget to get a deal.
Amtrak President David Gunn has said the passenger railroad needs $200 million in loan guarantees to keep running through September. The railroad says it will face a severe financial crunch around July 4.
Lawmakers of both parties are pressing to include $205 million for Amtrak in the supplemental spending bill now being negotiated among the Senate, House and Bush administration.
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Copyright 2002 by ClickOnDetroit.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.