by Donald Wood
Last updated: 2:18 PM ET, Fri April 10, 2020
Amtrak announced Friday it would receive over $1 billion in financial aid to support the rail company's efforts to prevent, prepare for and respond to the spread of coronavirus, as well as offset the drop in demand.
United States Secretary of Transportation Elaine L. Chao announced the support would come from the Department of Transportation's Federal Railroad Administration (FRA) as part of the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act.
"This $1 billion in federal emergency assistance to Amtrak will help maintain service for its passengers when the economy recovers," Secretary Chao said in a statement.
Since the start of the viral pandemic, Amtrak has experienced a decline of over ninety percent in ridership, as well as a reduction in future ticket purchases throughout the coming months. The company has also been forced to temporarily suspend service on many routes.
The funding from the CARES Act will be used to offset the loss of ticket revenue, pay employees, buy fuel for its operations and maintain Amtrak's network of intercity passenger routes.
"This funding will help ensure that Amtrak is able to quickly return to service supporting both the public's transportation mobility needs, and America's economic recovery from the COVID-19 public health emergency," FRA Administrator Ronald L. Batory said. "We are committed to transparency and are requiring enhanced reporting from Amtrak to show how the CARES Act funding is being efficiently and effectively used to respond to present challenges."
Ticket revenues also fund Amtrak's track and infrastructure maintenance programs on the rail company's Northeast Corridor, which millions of Americans use to commute to their jobs every day.
The financial aid will include $492,000,000 for the Northeast Corridor and $526,000,000 for the National Network Grants.
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