Senate Committee Approves FY2025 THUD Budget: What it Means for Railway and Amtrak

On Thursday, July 25th, the U.S. Senate Committee on Appropriations made a remarkable move by approving the Fiscal Year 2025 Transportation, Housing, and Development (THUD) budget. This decision is vital for advancing railway infrastructure and operations in the United States. The approved budget allocates $3.46 billion for federal rail programs and $17 billion for the Federal Transit Administration. This funding encompasses various vital aspects such as Amtrak operations, the Federal Railroad Administration’s (FRA) Safety and Operations Budget, the Federal-State Partnership for Intercity Passenger Rail Program, the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program, and the Capital Investment Grants (CIG) program. The substantial financial support for the FY2025 THUD budget is expected to positively impact our NARVRE members and railway enthusiasts nationwide.

Amtrak Operations

The approved budget includes substantial funding for Amtrak operations, guaranteeing the maintenance and improvement of passenger rail service throughout the country. This funding is crucial for sustaining existing services, upgrading infrastructure to meet the increasing need for efficient and sustainable transportation, and enhancing reliability. Here is a breakdown of how the numbers look for Amtrak operations: 

• $2.63 billion for Amtrak operations, an increase of $210 million over FY24 levels and $530 million more than the House version. 
• $1.61 billion for National Network operations – Amtrak will use $66 million in National Network funds for corridor development activities, including $10 million for a new Atlanta intercity passenger rail hub and $20 million for Pacific Northwest rail improvements.
• $1.02 billion for Northeast Corridor operations.

FRA’s Safety and Operations Budget

The railway industry prioritizes safety, as reflected in the approved budget, which includes notable funding for the FRA’s Safety and Operations Budget. This funding will support initiatives to improve safety standards, conduct rigorous inspections, and implement advanced technologies to prevent accidents and enhance overall operational safety. For NARVRE members, this means a safer working environment for our current employees and improved safety measures for all passengers. Here is how the number breakdown for this section of the budget:

• $292 million for the FRA’s Safety and Operations budget, an increase of $24 million over FY24 and $4 million more than the House version.

Federal-State Partnership for Intercity Passenger Rail Program

The Federal-State Partnership for Intercity Passenger Rail Program encourages cooperation between federal and state governments to improve intercity passenger rail services. The approved budget provides increased funding for this program, which will support establishing new routes, extending current services, and enhancing rail infrastructure. This partnership plays a vital role in building a more effective, efficient, and interconnected rail network, benefiting passengers and the economy. Here are the budget numbers for the Intercity Passenger Rail Program:

• $100 million for the Federal-State Partnership Intercity Passenger Rail Program, an increase of $25 million over FY24 and $100 million more than the House version. 
• Includes a $15 million set aside for the Union Station Redevelopment Corporation to rehabilitate and repair the Washington Union Station complex.

CRISI Grant Program

The CRISI Grant Program is crucial for addressing essential rail infrastructure needs. The budget allocation for FY 2025 will fund projects that improve rail safety, reliability, and efficiency, including enhancements to rail lines, stations, and other essential components. For NARVRE members, this funding represents an ongoing investment in the infrastructure that supports our careers and the safe, reliable transportation of goods and passengers. Here is the amount allocated to the CRISI fund:

• $475 million for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant program, an increase of $276 million over FY24 levels and $176 million more than the House version, including $75 million in Congressional Directed Spending earmarks.

Capital Investment Grants Program

The Capital Investment Grant (CIG) program is crucial for funding large-scale transit infrastructure projects, particularly those related to railways. The FY 2025 budget guarantees ongoing support for the CIG program, which will facilitate the advancement and successful completion of important projects to modernize and expand our country’s transit system. This investment is vital for the long-term sustainability and expansion of passenger rail services, offering enhanced mobility choices for communities across the country. The following is the approved monetary amount to help with the Grants Program:

• $2.3 billion for Capital Investment Grants, a $57 million increase over FY24 and $1.5 billion more than the House version.

Looking Ahead

The Senate Committee on Appropriations’ approval of the FY 2025 THUD budget is a positive development for the railway industry and NARVRE members. It is committed to enhancing and modernizing the nation’s rail infrastructure, ensuring more reliable, safer, and efficient rail services. As we look to the future, continued support and investment in these programs will be essential for maintaining the legacy of rail travel and meeting future generations’ transportation needs. The Senate T-HUD bill still needs to be approved by the full Senate, and a vote hasn’t been publicly scheduled.

As a member of NARVRE, you can rest assured we will keep you updated and help you stay informed and engaged as we continue to advocate for the interests of retired and veteran railway employees. Together, we can ensure that the railway industry remains a cornerstone of American transportation.