Summary: Since 1971, when Amtrak assumed responsibility for operating the nation's intercity passenger trains, the federal government has provided the corporation with more than $18 billion to cover annual operating losses and to make capital investments. Despite this support, by 1994 Amtrak's financial and operating condition had declined to the point at which its long-term survivability was seriously threatened. At the same time, federal budget constraints have made it more difficult for Congress to provide its historic level of support. In response, Amtrak developed a Strategic Business Plan to boost revenues and cut expenses. Its goal is to eliminate the need for a federal operating subsidy by fiscal year 2002. Amtrak's success in implementing the plan will go a long way toward deciding the future of intercity passenger rail service in the United States. This report (1) describes the actions that Amtrak plans to take and the expected results; (2) reviews Amtrak's progress so far in achieving financial improvements and its progress toward realizing the longer-term goal of operating self-sufficiency; and (3) describes Amtrak's efforts to monitor the plan's implementation.
