Amtrak IG assesses company’s spending plans

Amtrak IG assesses company’s spending plans

By Bob Johnston | September 7, 2023

Report shows how funds are planned to be divided, but individual amounts are redacted

Passenger train passes commuter-train station
Amtrak’s Inspector General has issued a report citing proactive steps taken by company management in dealing with some $22 billion it is to receive as part of the Infrastructure Investment and Jobs Act. The report shows a portion of the funding is marked to replace the long-distance fleet and locomotives. Here, the westbound California Zephyr passes through Western Springs, Ill., on Feb. 26, 2022, with older long-distance equipment that could be replaced. David Lassen

WASHINGTON — Amtrak’s Office of Inspector General on Wednesday released a report detailing the steps the company says it is taking to use, account for, and report on the $22 billion it is slated to receive directly from Infrastructure Investment and Jobs Act (IIJA) funding [see “Infrastructure bill addresses Amtrak priorities, congressional requirements,” News Wire, Nov. 8, 2021].

 

Amtrak IIJA funds chart
IIJA Funds Available for Passenger and Freight Rail. Source: OIG analysis of IIJA

 

The 2021 legislation also provides an additional $44 billion to fund competitive grant opportunities, such as the Federal-State Partnership Program for Intercity Passenger Rail, in which Amtrak is partnering with states and operating authorities to expand service. A total of $1.49 billion has been allocated for matches here.

The IG report largely covers investments over which Amtrak has complete control, including:

  • $6.62 billion for Siemens Aero trainsets and the substantial modification of facilities everywhere they will require servicing.
  • $4.94 billion to replace the long-distance fleet and locomotives
  • $2.78 billion to address deferred capital projects and reduce inventory of obsolete assets
  • $2.38 billion to upgrade or modify maintenance facilities
  • $1.74 billion for Americans With Disabilities Act requirements as specific stations

Some detail is provided in Appendix C of the full report.

For example, there are 33 line items associated with acquisition of the Aero trainsets, but which “obsolete assets” are to be reduced is not stated. The Appendix notes if Amtrak has submitted a cost estimate for each category and whether the Federal Railroad Administration has approved the expenditure. However, the actual amounts are redacted “due to [their] sensitive nature.”

In general, the Inspector General’s report is supportive of the restructuring Amtrak management has “proactively taken” to administer perhaps the biggest injection of federal funds at any single point in the company’s history. Considerable corporate resources are being allocated to fulfill the IIJA’s reporting requirements, including creation of an implementation committee and project tracker. About $700 million has been spent so far.

 

Amtrak IG report spending chart
IIJA Planned and Actual Expenditures (in billions) as of July 2023. Source: OIG analysis of Finance department data

 

The OIG report concludes, “It is too soon to assess the effectiveness” of plans and “processes” Amtrak is implementing. “Accordingly, we are not making recommendations in this report, but we have initiated audits of individual IIJA-funded programs to assess the company’s management and use of its IIJA funds.”

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