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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements
9
Years Ended September 30, 2015 and 2014
1. Nature of Operations
The National Railroad Passenger Corporation (Amtrak or the Company) was incorporated in 1971 pursuant
to the Rail Passenger Service Act of 1970 and is authorized to operate a nationwide system of passenger rail
transportation. The United States government (the Federal Government) through the Secretary of the United
States Department of Transportation (the DOT) owns all issued and outstanding preferred stock. Amtrak’s
principal business is to provide rail passenger transportation service in the major intercity travel markets of
the United States. The Company also operates commuter rail operations on behalf of certain states and transit
agencies, provides equipment and right-of-way maintenance services, and has leasing operations.
The Company has a history of recurring operating losses and is dependent on subsidies from the Federal
Government to operate the national passenger rail system and maintain the underlying infrastructure. These
subsidies are usually received through annual appropriations. In recent fiscal years, appropriated funds for
Amtrak have been provided to the DOT, which through its agency the Federal Railroad Administration (the
FRA) provides those funds to Amtrak pursuant to operating and capital funds grant agreements. Amtrak’s
ability to continue operating in its current form is dependent upon the continued receipt of subsidies from
the Federal Government. The DOT, through the FRA, also provides financing to Amtrak through the Railroad
Rehabilitation and Infrastructure Financing (RRIF) Program.
See Notes 2, 4, 5, 6 and 7 for additional information about Amtrak and its relationship with the DOT and the
FRA.
2. Annual Funding
On December 4, 2015, the President signed as Public Law 114-94, the Fixing America’s Surface
Transportation Act (the FAST Act). Title XI-Rail of the FAST Act, cited as the Passenger Rail Reform and
Investment Act of 2015 (PRRIA 2015), authorizes funding to the Secretary of the DOT (the Secretary) for
annual grants to Amtrak totaling $8.1 billion for fiscal years (FY) 2016 through 2020. PRRIA 2015 directs
$2.6 billion of this support to Amtrak’s Northeast Corridor (NEC) and $5.5 billion to Amtrak’s National
Network as defined in the FAST Act, and it authorizes an additional $2.2 billion for other rail grant programs
in which Amtrak may participate.
The FAST Act funding authorizations supersede those within the Passenger Rail Investment and Improvement
Act of 2008 (PRIIA 2008), which was enacted on October 16, 2008 as Public Law 110-432. PRIIA 2008
authorized the appropriation of funds totaling $9.8 billion for FY2009 through FY2013 to be used by the
Secretary for annual operating and capital grants to Amtrak. Pursuant to various appropriations, some of the
requirements in PRIIA 2008 continue to apply in Amtrak’s FY2014, FY2015 and FY2016.
The table below provides information on funding received for the Company’s fiscal years ended September
30, 2016, 2015 and 2014 under the Continuing Appropriations Act or Continuing Appropriations Resolution
(CR) and the Consolidated Appropriations Act or Consolidated and Further Continuing Appropriations Act
(Full Year Funding) related to those years (dollars in millions):