Amtrak to receive $ 1.69 billion in COVID-19 relief

The Federal Railroad Administration (FRA) has provided more than $ 1.69 billion in funding to the National Railroad Passenger Corporation (Amtrak), informs Railway Supply  magazine with reference to Railway Technology.

Amtrak to receive $ 1.69 billion in COVID-19 relief
Picture: Amtrak

Financial assistance offered under the American Rescue Plan Act 2021 will help Amtrak get rid of the impact of Covid-19. Amtrak will use the funds to offset the loss of ticket revenues it normally devotes to running trains and managing its infrastructure.

The company has begun returning laid-off employees and is preparing to re-establish intercity services in May.

US Transportation Secretary Pete Buttigieg said, “Help is here. The president’s American bailout plan is already in place for working and traveling people. This new assistance for Amtrak will bring employees back to work and re-establish operations on routes across the country at a time when this assistance is urgently needed. ”

USA: huge investment in rail transport

The FRA is allocating about $ 728 million for the National Network of State-supported and Intercity Passenger Lines and nearly $ 969 million for the Northeast Corridor (NEC).

Acting FRA Administrator Amit Bose said: “Timing this funding is essential to ensure that Amtrak can get back to work quickly, supporting the country’s transportation needs and recovery from the Covid-19 pandemic. For our part, we are committed to transparency and require extensive accountability from Amtrak to show how funding from the American Rescue Plan is being used effectively to address current challenges. ”

Under a grant agreement with the FRA, the company will have to report on the number of laid-off employees called up to serve, as well as a plan for the expected return of all laid-off workers.

Related:

The European Year of Rail has started