Summary: From its inception in May 1971, Amtrak has been provided by the Federal Government with operating subsidies, loans, and grants totaling billions of dollars. GAO investigated Amtrak's prospects for reducing its subsidy need and questioned whether either high-speed corridor service or long-haul service could be made more profitable. Some areas were found where Amtrak could reduce its costs, but doing so would be difficult and the overall effects on its subsidy need would not be substantial. For example, it is difficult for Amtrak to control its labor cost because much of it is incurred by other railroads providing service to Amtrak under contract. GAO concluded that the only way Amtrak could substantially reduce its subsidy need would be to reduce service and that neither corridor service nor long-haul service held much potential for improvement. Viewed solely in economic terms, the bleak operating results of Amtrak suggest little justification for continuing many rail passenger trains. Congress may want to consider social and environmental factors in making its final decisions on Amtrak funding.
