Amtrak aiming to have states pick up operating expenses for short-haul routes
As Amtrak has been recording record ridership on its core routes, federal budget belt-tightening has forced the transit agency to engage the states in cost-sharing measures for some of its smaller lines. However; this also serves an opportunity for some lines to be upgraded with enhanced infrastructure thus enabling some routes to operate at higher speeds. More from the New York Times:
The railroad has traditionally subsidized some local routes, while leaving others up to the states to support, but now state governments will have to pay for all local routes of less than 750 miles in a state. The Northeast line, Amtrak’s moneymaker, is not included. If all the states chip in, Amtrak officials expect revenue to increase by about $85 million a year, which would shrink its chronic deficit.