(Washington, D.C.)  The Council for Citizens Against Government Waste (CCAGW) today praised the efforts of Representative Ernest Istook (R-Okla.) for his efforts in fighting wasteful spending.  Rep. Istook is pushing for a significant reduction in Amtrak funding forcing the subsidized railroad to cut unprofitable lines, and a cut in essential air service subsidies.

“Rep. Istook should be commended for his approach to transportation funding,” CCAGW President Tom Schatz said.  “Rep. Istook made a bold statement by substantially reducing wasteful subsidies for both Amtrak and the essential air service.”

The House Appropriations Subcommittee on Transportation, Treasury, and Independent Agencies, of which Rep. Istook is Chairman, last week approved by voice vote a spending bill which would fund $580 million for Amtrak in fiscal 2004.  This is far less than the $900 million requested by President Bush and the $1.8 billion asked for by Amtrak President David Gunn.  Furthermore, the bill requires the money only be spent on Amtrak’s Northeast Corridor and West Coast routes, the two most profitable sectors.  The full Appropriations Committee is scheduled to take up the bill on Monday, July 21.  CCAGW has sent a letter to the House Appropriations Committee urging Chairman Istook’s colleagues to support his recommendations reducing funding for Amtrak and essential air service subsidies.

“Amtrak has failed to produce a profit since its inception in 1971, and did not meet the Congressional deadline of December 2, 2002, to achieve self-sufficiency,” Schatz continued.  “It has clearly become a black hole for taxpayer dollars.  Since its creation, Amtrak has cost $500 million in subsidies per year, and had an operating loss of $1.1 billion in 2001.  Its intercity passenger service alone lost $87.20 per passenger in 2001.  Fewer and fewer people use it, due to less costly and more efficient alternatives, yet everyone pays for it through taxes.  ”

The essential air service subsidy programs allows for the federal government to compensate air carriers for commuter flights between smaller communities.  The bill would scale back the subsidy by 60 percent.  To offset some of these cuts, highway spending is receiving $34.1 billion, an increase of $2.5 billion over the current fiscal year.

“Since 9/11, the levels of air and rail travel have dropped dramatically.  With an ailing economy, more families are choosing to vacation closer to home in an effort to maintain their budgets, and business travel has also slowed,” Schatz concluded. “Rep. Istook’s plan is not only common sense, it is fiscally responsible for taxpayers.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.