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Passenger Rail & Buy America

Passenger Rail

The United States has underinvested in intercity passenger service since the 1950s. A once vibrant intercity passenger rail supply community virtually disappeared in the 1970s. Uneven investment in Amtrak over the last 40 years has not allowed for a strong intercity passenger supply industry to reemerge. However, what has survived has been supported by Buy America regulations requiring that a portion of federally funded purchases have 50 percent domestic content. Recent recognition by the federal government and states that passenger rail is a viable transportation alternative has led to increased funding providing some optimism that the passenger supply sector is poised for growth. The Administration's strong support of high speed rail has increased that optimism.

One reason highways and transit have continued to prosper is that these modes enjoy a dedicated source of funding - missing in high speed and intercity passenger rail. RSI continues to work with Congress and the Administration on ways to develop a dedicated, multi-year passenger rail funding proposal that will work.

The $8 billion committed to high speed rail through the American Recovery and Reinvestment Act (ARRA) and the $2.5 billion provided through the Fiscal Year (FY) 2010 U.S. Department of Transportation appropriations process provides a solid beginning to jump starting our country's passenger rail system. Unfortunately, the FY 2011 budget deal eliminated funding for high-speed rail and took back $400 million in FY 2010 funding.

View A Full List of High Speed Rail Awards
View FRA May 2011 Press Release Announcing $2 billion in HSR Awards

FY 2011 DOT Appropriations: Congress approved the following levels for these DOT programs in FY 2011:

  • High Speed and Intercity Passenger Rail (HSIPR) grants are zero for FY 2011
  • Rescinds $400 million for HSIPR grants from FY 2010 not yet obligated
  • $1.486 billion for Amtrak - $563 million for operating grants and $923 million for capital and debt service payment grants.
  • $35.1 million for Railroad Research & Developmente
  • $10.5 million for rail line relocation program
  • FRA safety grants (PTC) is zero.
  • FRA safety and operations is $177 million
  • $1.6 billion for FTA Capital Investment Grants (New Starts)
  • $527 million for National Infrastructure Projects (TIGER grants)

Buy America Requirements

We have been strong supporters of Buy America regulations and believe they have promoted the development of a passenger rail car building industry in this country, but separate programs for high speed, intercity passenger rail and transit are confusing. We believe Buy America could be improved by implementing the following recommendations:

  • Clarification of Buy America standards by streamlining the particular differences among provisions specific to Buy American, Federal Transit Administration, Federal Railroad Administration and under the American Recovery and Reinvestment Act.
  • Improve transparency and accountability of domestic content requirements and introduce incentives to increase domestic content.
  • DOT's National Rail Plan should support development of a renewed U.S. passenger rail equipment manufacturing industry through a vision of sustained equipment purchases and equipment lifecycle policies that avoid "boom or bust" procurement cycles.

View Buy America White Paper