he government created Amtrak to preserve a passenger system it knew to be unprofitable and would likely not have survived without its intervention. To date, it continues to lose money and is expected to receive $1.42 billion in federal funding (FY 2012) despite hitting an all-time passenger high of 30 million and ticket sales of $1.9 billion in 2011. The only passenger trains reported to cover their operating costs, according to the Congressional Research Service, are the high-speed Acela trains running in and out of New York City along the Northeast Corridor between Boston and Washington, D.C. Indeed, to increase profitability, Brookings' Robert Puentes urges Amtrak to "focus on and prioritize short-haul corridors that connect our nation's major metros." Others, including some Republicans in Congress, suggest the government should exit the passenger business altogether, including handing the operations of profitable corridors over to private interests (WashPost).
However, Amtrak and the expansion of high-speed rail development have garnered significant attention at the federal level, particularly as lawmakers grapple with high gasoline prices and begin to think strategically about climate policy. The Obama administration reignited interest in HSR in 2009 with a proposal that included a multi-billion dollar investment. Amtrak's only high-speed rail line, Acela Express, has a maximum capacity speed of 150 miles per hour, though trains often run slower due to track sharing with typical passenger cars.
Proponents of HSR highlight job creation, environmental friendliness, and reduced congestion in other transportation industries, while opponents point to HSR's high costs and questionable utility. So far Acela is making money, but critics say its success is unlikely to be reproduced in other areas since the line already runs in Amtrak's most profitable corridor.
Economic uncertainties for expanding high-speed rail remain, including the projected number of passengers, average cost, and public benefits. Republicans generally prefer private investment as opposed to government funding for such high-risk ventures. The debate in California is a prime example of the overall contention surrounding HSR innovation in the United States. Many in the state legislature support the concept of a California HSR network (Reuters), but the projected cost of nearly $100 billion has lawmakers rattled.
William J. Mallett, transportation policy specialist at the Congressional Research Service, notes: "I'm not convinced high-speed rail is the answer to some people's prayers, because the geography of the United States is different than Europe… a high-speed rail network that covers the whole country is probably not feasible." Countries with HSR generally have higher population densities, smaller land areas, and lower rates of car ownership than the United States.