Stopping the Runaway Train: The Case for Privatizing Amtrak

When Congress created Amtrak in 1970, passenger-rail advocates hoped that it would become an efficient and attractive mode of travel. More than 40 years later, Amtrak has become the highest-cost mode of intercity travel and remains an insignificant player in the nation's transportation system. Budgetarily, Amtrak has become a runaway train, consuming huge subsidies and providing little or no return. Simple justice to Amtrak's competitors as well as to taxpayers demands an end to those subsidies. In this Policy Analysis, O'Toole argues that the only solution for Amtrak is privatization.