February 12, 2004.

Dear Colleague:

Last year, you signed a "Dear Colleague" advocating a federal subsidy of $1.8
billion for Amtrak, to be provided from general fund revenues.

Knowing of your interest, and since the need to control spending is even more
important this year than last year, I thought it prudent to write before you are
asked to declare any position in this funding cycle.

As he did last year, President Bush's proposes $900 million for Amtrak. This
was the amount supported by the House of Representatives last year. Amtrak's
independent request for FY05 funding -- which it submits with no external review
(such as by OMB), and with no effort to balance its needs with the rest of the
federal budget -- again asks $1.8 billion, double the amount requested by the
White House. The ultimate FY04 appropriation was $1.217 billion (after an
across-the-board adjustment) in the Consolidated Appropriations Act, 2004, which
was signed into law last month.

Last year Amtrak claimed it would shut down if it didn't get $1.8 billion. They
didn't get it, and they didn't shut down either. This year they are repeating
the same claim, and it has the same level of credibility.

The President believes that increased federal funding for Amtrak (beyond $900
million) cannot be justified without significant reform, based on five
principles of sound economics, transitioning Amtrak to a pure operating company,
introducing managed competition, establishing a long-term financial partnership
between states and the Federal Government, and creating an effective public
partnership in the Northeast Corridor. I support these goals.

But continuing to throw increasingly scarce dollars into Amtrak will not help us
achieve these goals. There is currently no Federal policy regarding America's
national rail system. Amtrak's reauthorization has been without Congressional
action for two years now. Without significant and fundamental reforms, the
Administration will not support funding for Amtrak higher than $900 million, and
neither will I.

The recent history of Amtrak appropriations demonstrates how fast their appetite
for extra funding has grown:

FY99 - $609-M
FY00 - $571-M
FY01 - $520-M
FY02 - $626-M
FY03 - $1.043-B
FY04 - $1.217-B

Amtrak's request must be weighed against other, higher priorities. Every dollar
for Amtrak is a dollar less for other transportation funding, including projects
for your state and your district. Last year, Amtrak funding forced us to cut or
forego funding for airport and highway projects in Members' districts, hurting
Members who did not want Amtrak to receive such a huge subsidy. Funding
constraints were very tight last year, but this year they are much more
difficult. Before you consider endorsing Amtrak's latest request, please
consider the impact on other transportation needs, both nationally and in your
own state and district.

A "Dear Colleague" letter has just been sent to every House Member, outlining
the process for reviewing the transportation priorities for your district as we
develop our fiscal year 2005 bill. As you submit these important priorities for
your district, please bear in mind that any request for Amtrak funding, even if
submitted in a separate document, must and will be weighed against your other
requests, and I will consider it a project request for your district.

Further, I assume that you do not want to worsen the budget deficit to fund
Amtrak so please share with me and staff any offsets within our bill that you
would support to provide funds for Amtrak.

Sincerely,

/s/ Ernest J. Istook, Jr.
Chairman
Subcommittee on Transportation, Treasury and Independent Agencies Appropriations

Rep. Istook contact page>>>>>

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