These cable providers giving you a front row seat to democracy. Up next a house transportation and infrastructure subcommittee hears testimony from amtrak c. E. O. Steven gardner and the executive director of the northwest Corridor Commission on improving Train Service and efficiency. They also discuss passenger safety, route options in the midwest and west coast and high speed rail. [captions Copyright National cable satellite corp. 2023] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] the subcommittee will come to order. I ask unanimous consent that the chair may call recess at any time. Without objection, so ordered. I recognize myself for Opening Statement for five minutes. Todays hearing examines the current and future state of amtrak. The Infrastructure Investment and job act gave historic funding to railroads with a large portion of that money going to amtrak. Amtrak is a federally chartered corporation with the federal government as the majority stake holder. Its board of directors is appointed by the president and confirmed by the senate. Amtraks funding largely comes from the federal government versus from ticket revenue. Without objection significant taxpayer support we know that amtrak could not operate. Since its creation in 1971, amtrak has never made a profit. 1971. Amtrak has never made a profit. Despite the funding provided in ija, amtrak predicts ill will lose 1 billion work a b, per year with those losses largely imoiferred taxpayers. My democrat colleagues like to note that highways an airlines also rely on government subsidies to operate. Those modes receive federal support they are also essential forms of transportation and high use and high demand by the American People. Unlike amtrak, americans could not travel and function as they do without the use of highways an airplanes. And during the covid19 pandemic, amtrak ridership and revenues plummeted as commuters stayed home or chose to use other modes of transportation. Ultimately, amtrak received billions of extra dollars in covid relief to operate largely empty trains for several months. Today, we will examine the state of amtraks postcovid recovery. While amtrak has regained ridership in recent months well hear about their plans to continue both the demand and ticket revenue. Amtraks losses arise mostly entirely from its National Network in Long Distance routes. Rather than focusing on attracting riders to existing route, amtrak now seeks to expand this network, risking a greater expense to the taxpayer. Some of these new routes will require the states to cover costs and losses. In fairness to amtrak, prior to the pandemic, it was on a path to achieve profitability for the first time fluffily 50 years. First time in roughly 50 years. This came in response to decisions by leaders that focused on sacrifices. While growth is a positive trend,amtrak must focus on improving its Current Network including system upgrades and improving safety, security and Customer Satisfaction issue that was plagued amtrak for years over expansion ambitions. In addition to spending and revenue issues, this committee has questioned amtrak about its clines with the americans with disabilities act, rising crime nits stations and train, potential transportation of Illegal Immigrants from the southern border on its trains, and generous executive bonuses despite losses and service problems. Amtrak must work to attract customers and revenues and operate as a reasonable steward of taxpayers dollars. It should ensure its network is safe and secure. Further it is necessary for amtrak to strengthen its relationship with the state, including through the development of a transparent and fair Cost Allocation policy for statesupported amtrak routes. Finally, any potential expansion of amtrak system must allow for railroads to provide input on track sharing issues. The recent supply chain crisis further emphasizes the value of Freight Railroad in efficiently moving goods across the nation. Amtraks passenger Expansion Efforts should not be allowed to obstruct Critical Movement of Freight Railroads. I now recognize Ranking Member payne for five minutes for an Opening Statement. Mr. Payne thank you, mr. Chairman. One of the points you made, if theres an example of a pageantty somewhere in the world that is profitable on its own, please of a passenger entity somewhere in the world thats profitable on its own, i would love to know about it. Chairman graves, Ranking Member larson, and our two witnesses thank you for being here today. We are here today in an exciting time for amtrak and more broadly intercity Passenger Rail across the country. For the first time this mode of transportation has guaranteed funding for multiple years. The value of the certainty is not to be understated. This is the this is akin to the beginning of the interstate highway system which we continue to support. The bipartisan infrastructure law intiend President Biden in november, 2021, provides 22 billion in funding to amtrak through fiscal year 2026. 16 billion of which is to be invested in the National Network while the remaining 6 billion goes toward infrastructure. And that is along the northeast corridor. Another 19 billion is authorized for amtraks Capital Investments nationwide. The bipartisan infrastructure further invests 36 billion in the federalstate partnership for intercity Passenger Rail programs with 24 billion allocated explicitly to the northeast corridor. Another 7. 5 billion in funding is authorized for this grant program. Amtrak recently submitted grant applications for multiple projects through this Program Totaling roughly 9 billion. Together these projects will assist in increasing rail capacity while reducing service interruption. Projects like the Gateway Program in my home state of new jersey will improve the Passenger Experience along the northeast corridor by digging a pair of new tunnels under the hudson river and replacing the portal bridge. Both of these chokepoints over 100 years old and maintenance problems here often cause delays for passengers riding amtrak and new Jersey Transit. Other projects along the northeast corridor such as the Frederick Douglass tunnel in baltimore need restoration. This tunnel is 150 years old. The oldest along the corridor. Water damage and tight curves force a train to slow down to 30 Miles Per Hour adding precious minutes to trips for travelers across maryland and the rest of the corridor. Similarly theres much work to be done on inner city rail projects across the country including bringing stations into compliance with the americans with disabilities act. Addressing amtraks aging rail cars and locomotives. And replacing bridges like the San Luis Rey River bridge in san diego, california. I look forward to new and improved corridors that can be advanced with this funding. The federal Rail Administration recently received numerous proposals for the corridor i. D. Program. This will be the template for Passenger Rail expansion in the coming years. Established corridors in North Carolina and california will finally have a consistent federal partner. New corridors are ripe for development in texas, nevada and the gulf coast. I look forward to the federal Railroad Administrations project pipeline that will identify Capital Projects needed to develop these and other corridors. All of this funding, all of these project, and all of the benefits that future generations will enjoy would not be possible without our efforts in the 117th congress when it passed the bipartisan infrastructure law in this chamber and sent it to President Biden for signature. 100 billion in funding for rail projects included in this monumental law is a game changer for communities nationwide. I look forward to diving in to some of the details with our witnesses shortly. With that, mr. Chairman, i yield back. Mr. Nehls mr. Payne yields. I recognize the Ranking Member of the full committee, mr. Larson, for five minutes for the Opening Statement. Mr. Larson thank you, chairman nehls and mr. Payne, for holding this hearing on improving amtrak across the country. The bipartisan infrastructure bill is a monumental achievement that supercharged our nations investment in rail. It provided bold, longterm investments across Transportation Systems and infrastructure creating jobs and benefiting our economy. Just last week the bureau of labor stats reported they added 300,000 jobs in may, including 25,000 construction jobs and 24,000 warehouse jobs. For inner city Passenger Rail doctor intercity Passenger Rail specifically, they guaranteed funding for repair investment and development, makes possible for the First Time Ever dedicated, reliable federal funding, disbursed over the next few years to expand and improve intercity Passenger Rail. Among the recipients was the city of burlington, washington, in the great state of washington, which is awarded a 2 million plans gran planning great to remove a grate crossing which will increase mobility for all rail traffic. Burlington mayor steve sexton brought this idea to me nearly a decade ago and im pleased to see the project awarded the funding it needs to improve safety and reduce congestion. Projects like this are improving the quality of life and creating jobs, Washington State has led the way in improving funding so far. I expect Great Results for our communities that will come from this grant and the additional rail funding to come as well. Amtrak and the f. R. A. Can now enact longterm plans for passenger expansion and improvement, secure in the knowledge that funding will be there in future years. The bipartisan budget agreement protected d. I. L. Funding including this vital rail funding and demonstrates support on both sides of the aisle to maintain these investments. I look forward to hearing from both of our Witnesses Today about the differences this budget certainty has made for them in developing sustaining programs and how this will improve service for rail panels. I want to apologize to mr. Warren for missing our meeting yesterday, it was an airplane issue, not a rail issue, that prevented me getting here on time. The demand for more frequent, more reliable Passenger Service is real. Cities and counties across the nation want increased access to the national Passenger Rail network. They know it will help them grow and thrive and provide a greener way to move people. Communities that have rail service want Better Service and those who done have rail service want service to start. Residents in my district were frustrated that covid shuttered several routes in my district, including one that involves seattle and can davment it took seven years to restart service after Hurricane Katrina, for those in gulf community, i share the frustration you and your constituents have experienced. As we did fighting if rail communitying in b. I. L. , we are committed to helping get regular, reliable Passenger Rail service. Of the 100 billion provided for rail in b. I. L. , 66 billion was provided in the form of advanced appropriations. The remaining 34 billion is subject to future appropriations. So i think we should continue to push for congress to fully fund its interconstituent city passenger lines, to reduce emissions and build a cleaner, greener, safer, and more accessible transportation network. B. I. L. Is also an investment in the work force, funding will be used to grow a welltrained, diverse work force to build, operate and maintain a national intercity Passenger Rail network. The investment in b. I. L. Is a great start but Congress Needs to build on this by securing a reliable funding dream for intercity rail. Highway, transit, airports andujar boars have access to trust funds allowing them to fund major, longterm Capital Projects without having to wait for annual appropriations process. Its past time to do this for rail. This committee will have the opportunity to hear from two witnesses on the frontlines in turn theegz investment into tangible services we can rely on. We will also examine amtraks plans for Service Growth and hear from one ofamtraks partners on how it will improve Passenger Rail in that region. I look forward to hearing from witnesses about their vision for the future of Passenger Rail. With that, i yield back. Mr. Nehls mr. Larsen yields. Ill take a minute to explain our lighting system to the witnesses. Tbleen means go, yellow, youre running out of time, red means pump the brakes. I ask unanimous consent that the witnesses full statements be included into the record. Without objection, so ordered. Your written testimony is then made part of the record. The subcommittee asks you limit oral remarks to five minutes. With that, mr. Gardner, youre recognized for five minutes. Mr. Gardner good morning, chairman nehls, Ranking Member larsen and others. Let me start with the strong year amtrak is having in 2023. Safety is our number one priority and its importance was highlighted by the tragic accident in india. Our heart goes out to those impacted and its a solemn reminder that our work is never done. Im glad to report, however that through march, amtraks rate of reportable injuries is 20 better than our annual goal and we have not had a single ntsbinvestigated accident this year. Im also proud to say we have returned service to all of our network. While several routes are still with less frequency than prepandemic, we are progressing the plan to add more service over the coming year. We also continue to upgrade our customer experience, improve facilities and enhance food and beverage offerings. Through april, our yeartoday ridership was 84 of prepandemic levels and in april it was 9 . By next year we expect to reach our level of 32 million riders again. This is remarkable and the best performance of any u. S. Passenger rail operator. Ridership does remain impacted by insufficient equipment and reduced business travel. Both have affect revenue, making Adequate Funding for the northeast corridor even more vital. Speaking of financials, through april of f. Y. 2023, our adjusted operating loss was 444 million, 53 million better than our plan. Our recovery has risen to 76 . Were still a ways off from achieving break even results as we were on track to do in f. Y. 2020 due to the more than three years of significant Cost Increases and lost revenue growth. But we see a path for our train operations business to return there under an apples to apples comparison in about five years. Let me also mention how the finances of the company have changed dramatically due to the large influx of capital funding. Amtrak is no longer shrimp a Passenger Rail operator but are now a Major ConstructionCompany Executing a major capital program. This creates additional operating expenses that didnt exist before. Regarding economics, congress was leer in the iiaj that the statutory goal is to maximize benefits not minimize our need for them. You can be sure well continue to play a balance on pursuit of improved Financial Performance woar statutory goals. Through the iija, for the first time in amtraks history, congress and the administration are now investing at the levels needed to achieve these goals. Since i last appeared before the subcommittee, amtrak has begun to receive our iija funds and put them to good use. With our partners, we recently applied for about 10 million in grants and were advance manage key projects including construction of the new hudson river tunnel and rehab of our east river tunnels, both of which will begin next year. Construction of portal north in new jersey which is about 25 complete. Advancing our b. M. P. Tunnel Replacement Program and projects in connecticut and maryland. Manufacturing our now aerotrain by siemens is sacramento, california, and our new trains by a company in upstate new york with suppliers from all across america. Procurement of oa new fleet of Long Distance trains, completion of 112a. D. A. Projects