Trump budget greenlights more National Network investment: Analysis

WASHINGTON — Although the Trump Administration’s budget for fiscal 2026 provided little rationale for boosting Amtrak’s National Network funding by almost 23% while decreasing Northeast Corridor money by 25.5%, the proposal provides insight for Congress and company leadership on what their priorities should be.

The recent release of budget details [see “Trump budget calls for 25% cut…,” Trains News Wire, June 2, 2025], is the document Amtrak’s management and board of directors said they were waiting for before issuing an annual Grant and Legislative Request to lawmakers. [See “Trump budget, Congress mum …,” News Wire, May 2, 2025]. As of today, that plan is still being crafted.

Establishing spending priorities

The U.S. House of Representatives is tasked with determining what financial support Amtrak receives annually, followed by approval of the Senate,. Unlike transit systems and commuter rail, which like roads receive pre-established Highway Trust Fund “formula” grants, Amtrak must compete for leftovers once defense and entitlement programs take big ladles from the same stew. The Highway Trust Fund is a de facto entitlement because gas tax shortfalls have resulted in more than $250 billion transferred from general revenues since 2008.

A series of Republican presidents, from Ronald Reagan to H.W. Bush, George W. Bush, and Donald Trump in his first term, periodically sought to “zero out” Amtrak in their initial guidance to Congress. Total shutdown was solidly rebuffed by members of both political parties over the years, but fiscal belt tightening required by budget deals led to subpar food service and discontinuance of many state-sponsored regional trains in the 1980s. It was similarly responsible for the decision to not revive the Sunset Limited east of New Orleans once CSX repaired tracks damaged by Hurricane Katrina in 2006.

Democrat Jimmy Carter inflicted damage to Amtrak’s nationwide route structure when adoption of his lean proposals by Congress caused the demise of the Lone Star, National Limited, and the original Chicago-Miami Floridian via Nashville. Misguided frequency reductions during the Clinton Administration led to poor performance and eventual death in 1997 of the Pioneer and Desert Wind, since triweekly trains must cover seven days of costs with three days of revenue.

Because a divided Congress couldn’t figure out a blueprint for the current year, Amtrak has been operating on a “continuing resolution” of amounts appropriated in 2024.

A look at what has been proposed and enacted since 2023 shows that overall spending for operations has been altered little, but the Trump blueprint represents a significant shift between the National Network, which includes state-supported trains, and Northeast Corridor accounts.

It isn’t clear what provoked the change. Perhaps current Amtrak accounting conventions, which portray Corridor operations “above the rail” as profitable because owned right-of-way costs are categorized as corporate expenses, prompted a view that the NEC doesn’t need as much if it makes money. The budget document also contains language preempting some management moves: “None of the funds shall be used by Amtrak, with respect to long-distance routes, to otherwise discontinue, reduce the frequency of, suspend, or substantially alter rail service on any portion of such routes.”

The 106-page Federal Railroad Administration fiscal 2026 budget includes estimates further subdividing National Network amounts:

Long distance, $838 million: $560 million for operating expenses.

State-supported, $611 million: federal match to state contributions.

Infrastructure access, $120 million: for non-NEC Amtrak-owned track.

FRA oversight, $12 million: agency review of capital projects, operations.

Note: The figures immediately above total $1.581 billion, but also includes money directly advanced to the FRA, so do not add up to the $1.577 billion shown in the table.

Corridor ID follow through?

After Amtrak gets funded, however, what’s the plan for “in progress” infrastructure initiatives started under the 2022-2026 Infrastructure Investment and Jobs Act passed by Congress?

Money to pay for Northeast Corridor Commission and States for Passenger Rail Coalition activities will come out of the two respective Amtrak accounts; the FRA says up to $3 million remains available for Interstate Rail Compacts and many high-ticket projects from the $13.2 billion in the IIJA’s final year of advance appropriations.

But language reveals that the FRA “does not anticipate significant funding being available for the Corridor ID set-aside once Amtrak fulfills its core operating and capital requirements on the National Network.”

Remember that under Biden Administration FRA’s tutelage, 69 projects received $500,000 upon being accepted into Phase 1 of the Corridor Identification and Development program [see “Full list of passenger routes …,” News Wire, Dec. 8, 2023]. If a project is advanced to Phase 2, route sponsors must come up with a local match to continue. Staff cuts at the agency have slowed the approval process, so it isn’t clear yet which projects will have an ability to move forward.

How will Corridor ID proposals be judged? “The FRA is conducting rigorous oversight of projects funded under both Amtrak’s annual grants and IIJA advance appropriations,” the document says, “and will bring a similar level of scrutiny to all new projects funded with the proposed FY 2026 resources, to ensure only the most meritorious projects are advanced.” The word “meritorious” can be subject to many interpretations.

It’s worth noting the FRA says, “Amtrak may use up to 10% of the amounts made available from the National Network account for planning, capital, and operating costs for Amtrak-operated corridors selected under the Corridor Identification and Development Program; however, FRA anticipates the vast majority of Amtrak’s FY 2026 annual funds to be used for its core capital and operating needs.”

Marching orders?

The budget document defers to Congress’ IIJA language to give management guidance regarding how it should prioritize company spending. Eliminating state-of-good repair backlogs on Amtrak-owned National Network and Northeast Corridor assets, as well as funding Americans with Disabilities Act station improvements top that list.

It will still be up to House appropriators to come up with a funding number. Though never enacted, Republican spending proposals have sought to sharply cut Amtrak money, but that now seems less likely in a year when those politicians have generally acquiesced to the Administration’s wishes.

Former CEO Stephen Gardner was apparently forced out earlier this year [see “Amtrak CEO Gardner resigns,” News Wire, March 19, 2025] and — projecting an unfavorable political environment — the company eliminated 450 jobs [see “Amtrak trims management workforce,” News Wire, May 7, 2025]. However, it is now evident Amtrak has been given at least a “medium clear” signal indication to proceed. Many obstacles to growth and system efficiency remain, such as the Texas legislature’s decision to deny Heartland Flyer funding [see “Heartland Flyer service in jeopardy …,” News Wire, June 4, 2025]. The capacity shortage precipitated by the corrosion-prone Horizon car fleet also needs to be resolved.

On the other hand, if Amtrak management demonstrates a sense of urgency in executing performance improvements to existing National Network service, tangible and reportable results can engender kudos from its government overseers, reinforcing their decision to continue their investment.

Time to address a daily Cardinal?

High-priority management initiatives could include:

— Making sure mechanical staffs are armed with the parts and expertise they need — not excuses—to reliably dispatch trains on time and sustain them en route.

— Getting train washers operating tomorrow — not sometime in 2026 — to deliver product pride to passengers.

— Continuing to return more sidelined Viewliner and Superliner revenue-producing assets to service.

— Implementing route-specific inventory oversight to maximize both ridership and revenue on state and long-distance corridors with the same intensity that Northeast Corridor departures are managed.

Finally, the Trump budget’s implicit vote of confidence allows Amtrak management to immediately consider fast tracking negotiation efforts with the State of Virginia, CSX, and short line Buckingham Branch that would lead to converting the triweekly Cardinal to daily operation. Doing so is near the top of the Corridor ID program priorities. The train has operated daily in the past. and a study under Section 210 of the Passenger Rail Investment and Improvement Act, led by the late Brian Rosenwald, explained how with minimal additional equipment, a daily Cardinal could replace the Hoosier State. PRIIA’s Section 209 requirement of state financial support led to that train’s cancellation in 2019. Indiana’s government doesn’t care, but the move cost Amtrak passengers and opportunities to ferry equipment to and from Indianapolis’ Beech Grove Heavy Maintenance Facility.

The “money-losing” moniker is entirely appropriate when referring to tri-weekly service.

An attempt to increase the Sunset Limited to daily operation while the train’s Union Pacific on-time performance is being adjudicated by the Surface Transportation Board and Amtrak is experiencing a Superliner shortage is problematic. So making the case to fix the Cardinal would show lawmakers Amtrak is actively attempting to improve National Network mobility and efficiency of an underperforming route Congress says it needs to operate. The Administration’s budget has provided an opening; maybe now is the time to walk through the door.