
WASHINGTON — President Joe Biden’s fiscal 2023 budget recommendations call for a significant boost over previous levels of rail funding, on top of amounts already appropriated in the Bipartisan Infrastructure Law. But like all Executive Branch budgets, they are only suggestions meant to guide Congress’ spending priorities.
The Federal Railroad Administration’s budget request is $4.66 billion compared with $2.86 billion in both 2021 and 2022.
Amtrak gets $1 billion of the increase to $3 billion, split between $1.8 billion for the National Network and $1.2 billion for the Northeast Corridor. With Bipartisan Infrastructure Law funds, the Amtrak total for fiscal 2023 would be $7.4 billion, not including any money the company might secure from competitive grant programs. The additional budget boosts benefit federal-state partnership, grade crossing elimination, consolidated rail infrastructure programs. The only currently enacted FRA funding category eliminated is $2 million for magnetic levitation technical deployment.
The Federal Transit Administration gets a $16.87 billion request, most in the form of $13.63 billion in formula grants. For the first time there will be $300 million available for railcar replacement as soon as a notice of funding opportunity is developed. This is expected to benefit legacy transit agencies.
The FTA budget also include set-asides called “Supplemental Advance Appropriations” of $200 million for the Amtrak Portal North Bridge and $100 million for preliminary engineering on the Hudson Tunnels.
When questioned on a media call why only $100 million was allocated to what has been estimated as a $12 billion rail tunnel project, FTA Administrator Nurla Fernandez clarified that this is a recommended amount, “that is going to sit until there is a full contract agreement and a project sponsor,” all details that remain to be worked out. “We are recommending funding for preliminary engineering and some projects that are in development. It will be made available at some point in the future,” she adds.
Most of the federal funding for the Hudson Tunnels is expected to come from competitive grants matched to some extent by Amtrak, New Jersey and New York, but financing the project continues to be a challenge.
Other notable FTA funding includes $400 million for the second phase of New York’s Second Avenue Subway, which would extend the Q line north from its current endpoint at 96th Street, adding three additional stations with a new terminus at 125th Street.
The complete “Budget Highlights” summary issued Monday by the U.S. Department of Transportation is available here.
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