those assets, that is not approved by the Asset Transition 
Committee. 
‘‘(f) MODIFICATION
OF BOARD AFTER RESTRUC-
TURING.—(1) Upon the commencement of operations of 
the Passenger Rail Service Provider and the Passenger 
Rail Infrastructure Manager under section 24310 of this 
title, the Board of Directors of Amtrak shall consist of— 
‘‘(A) the Secretary of Transportation; 
‘‘(B) the Federal Railroad Administrator or an-
other officer of the United States within the Depart-
ment of Transportation appointed by the President, 
by and with the advice and consent of the Senate, 
and compensated under the Executive Schedule 
under title 5, United States Code, who is designated 
by the Secretary; and 
‘‘(C) the Federal Transit Administrator or an-
other officer of the United States within the Depart-
ment of Transportation appointed by the President, 
by and with the advice and consent of the Senate, 
and compensated under the Executive Schedule 
under title 5, United States Code, who is designated 
by the Secretary. 
‘‘(2) Upon the designation of directors by the Sec-
retary under paragraph (1), and with the exception of the 
Secretary of Transportation, the members of the Transi-
tion Board of Directors shall no longer serve as appointees 
of the President to the Amtrak Board of Directors, but 
shall instead become members of the Board of Directors 
of the entities referred to in Federal law as the ‘Passenger 
Rail Service Provider’ or the ‘Passenger Rail Infrastruc-
ture Manager’.’’. 
SEC. 102. PASSENGER RAIL SERVICE RESTRUCTURING. 
(a) IN GENERAL.—Title 49, United States Code, is 
amended by inserting the following after section 24309: 
‘‘§ 24310. Amtrak restructuring mandate 
‘‘(a) IN GENERAL.—Within 6 months after Year One 
begins, and notwithstanding any other provision of this 
title, the Board of Directors shall prepare a plan to re-
structure Amtrak management, personnel, assets, oper-
ations, and other activities and relationships to conform 
to the requirements of this section. The Board shall trans-
mit the completed plan to the Committee on Commerce, 
Science, and Transportation of the Senate, the Committee 
on Transportation and Infrastructure of the House, and 
the Committees on Appropriations of the House and Sen-
ate. 
‘‘(b) MINIMUM REQUIREMENTS.—At a minimum, the 
restructuring plan required under this section shall pro-
vide for the following:
‘‘(1) The filing of appropriate Articles of Incor-
poration under State law for two business corpora-
tions that are entirely independent of Amtrak, here-
inafter referred to as the ‘Passenger Rail Service 
Provider’ and the ‘Passenger Rail Infrastructure 
Manager’ or collectively the ’successor corporations. 
‘‘(2) The division of Amtrak into three func-
tionally independent entities that provide the fol-
lowing: 
‘‘(A) A corporation, hereinafter referred to 
as ‘Amtrak’, that shall provide overall super-
vision of Amtrak restructuring and subsequent 
management of residual responsibilities, includ-
ing succeeding to the legal rights of the Na-
tional Railroad Passenger Corporation, and in-
cluding specifically Amtrak’s legal right of ac-
cess to other railroads, following transfer of rail 
operations and infrastructure management to 
the successor corporations established under 
paragraph (1). 
‘‘(B) Passenger rail operating services na-
tionwide, including operation of the reservation 
centers and ownership and management of ex-
isting rolling stock and its maintenance.
‘‘(C) Passenger rail infrastructure manage-
ment. 
‘‘(3) The assignment of all Amtrak personnel 
by name to one of the entities specified in paragraph 
(2), with no loss of pay or benefits, including senior-
ity rights to employment within any entity, except 
that an employee who elects employment with the 
entity specified by paragraph (2)(A) shall become an 
employee of the corporation, with only such rights 
regarding pay and benefits as the corporation shall 
determine. 
‘‘(4) The division of accounting, finance, budg-
et, assets, and personnel to provide for the operation 
and funding of each entity independently. 
‘‘(5) A transition schedule that provides for 
completion of the restructuring not later than the 
last day of Year One. 
‘‘(c) SUCCESSOR
CORPORATIONS.—(1) Consistent 
with the business corporation law of the State of incorpo-
ration of the successor corporations specified by sub-
section (b)(1) of this section, each of the successor cor-
porations shall be qualified to undertake railroad activities 
of an operational or infrastructure nature on a contractual 
basis with Amtrak or any other entity. 
‘‘(2) The Passenger Rail Service Provider—
‘‘(i) shall have the exclusive right, until the last 
day of Year Three, to continue to provide the inter-
city passenger service that is being provided by Am-
trak on the date of enactment of the Passenger Rail 
Investment Reform Act, but after the last day of 
Year One, may operate such passenger rail service 
only under a contract; and 
‘‘(ii) shall provide interline reservations services 
to any other provider of intercity passenger rail serv-
ices on the same basis and rates as services are pro-
vided to the operational entities that provide service 
within Amtrak on the date of enactment. 
‘‘(3) The Passenger Rail Infrastructure Manager— 
‘‘(i) shall have the exclusive right, until the last 
day of Year Six, to continue to provide the dis-
patching, maintenance, and infrastructure services 
that are being provided by Amtrak on the date of 
enactment of the Passenger Rail Investment Reform 
Act, but after the last day of Year One, may provide 
these services only under a contract; and 
‘‘(ii) shall carry out the multi-year infrastruc-
ture plan prepared by Amtrak, to the extent funds 
are made available. 
‘‘(4)(A) The successor corporations are not a depart-
ment, agency, or instrumentality of the United States
Government nor are they Government corporations (as de-
fined in section 103 of title 5). 
‘‘(B) Chapter 105 of this title does not apply to the 
successor corporations. However, laws and regulations 
governing safety, employee representation for collective 
bargaining purposes, the handling of disputes between car-
riers and employees, employee retirement, annuity, and 
unemployment systems, and other dealings with employees 
that apply to a rail carrier providing transportation sub-
ject to subchapter I of chapter 105 apply to the successor 
corporations. The employee retirement, annuity, and un-
employment systems that apply to a rail carrier providing 
transportation subject to subchapter I of chapter 105 
apply to the entity specified by subsection (b)(2)(A) of this 
section. 
‘‘(C) Subsections (c) through (l) of section 24301 of 
this title shall apply to the successor corporations. 
‘‘(5) Subject to further action by the Board of Direc-
tors, the President of Amtrak on the date of enactment 
of the Passenger Rail Investment Reform Act shall be of-
fered the position of Chief Executive Officer of the Pas-
senger Rail Service Provider. 
‘‘(6) The contractual rights of successor corporations 
to provide services may not be extended beyond the dates
set forth in subsections (c)(2) and (c)(3), as applicable, 
without competitive bid. 
‘‘(7) The Passenger Rail Service Provider shall pro-
vide to the Secretary of Transportation not later than 18 
months after the enactment of the Passenger Rail Invest-
ment Reform Act, recommendations on the feasibility, ad-
vantages, and disadvantages of separation of the reserva-
tion centers into a free-standing entity that can become 
an element of an intermodal reservations service. 
‘‘(8) The functionally independent entity specified by 
subsection (b)(2)(A) shall retain all legal rights pertaining 
to the name ‘Amtrak,’ and may, at its option, license or 
otherwise make the name ‘Amtrak’ commercially available 
in connection with intercity passenger rail and related 
services. 
‘‘(d) ROLLING STOCK AND SHOPS.—(1) With respect 
to any route on which intercity passenger rail service is 
provided on the date of enactment of the Passenger Rail 
Investment Reform Act, the Passenger Rail Service Pro-
vider shall make available to any replacement operator the 
legacy equipment that is associated with the service on the 
route. 
‘‘(2) Such equipment and services shall be made 
available on such terms as Amtrak determines are fair, 
reasonable, and in the public interest.
‘‘(e) FREIGHT AND COMMUTER OPERATIONS.—(1) 
Amtrak shall ensure that the implementation of the re-
structuring prescribed in this section gives due consider-
ation to the needs of freight and commuter rail operations 
that, as of the effective date of the Passenger Rail Invest-
ment Reform Act, operate in the Northeast Corridor on 
Amtrak right of way. 
‘‘(2) Notwithstanding paragraph (1), commuter serv-
ices headquartered in a State or Commonwealth that is 
not a member of the North East Corridor Compact after 
the last day of Year Two, shall pay the fully allocated costs 
incurred by the successor corporation or any successor en-
tity for access to and use of the Northeast Corridor for 
such services. 
‘‘(3) The right of access by Amtrak to rail lines 
owned by other carriers is, as of the effective date of the 
Passenger Rail Investment Reform Act, restricted as fol-
lows: 
‘‘(A) The terms and conditions for operation of 
an intercity passenger rail route or frequency to be 
added after the date of enactment of the Passenger 
Rail Investment Reform Act shall be determined by 
negotiation and mutual agreement between the host 
railroad and the operator of the route or frequency
sought to be added, with no preferential right of ac-
cess. 
‘‘(B) If not utilized by Amtrak, Amtrak’s right 
of access to any segment of rail line owned by an-
other rail carrier may be assigned to no more than 
one intercity passenger rail operator during the term 
of the assignment, except by agreement among Am-
trak, its assignee, and the owner of the rail line.’’. 
(b) CONFORMING AMENDMENTS.—(1) The analysis 
of chapter 243 of title 49, United States Code, is amended 
by inserting the following after the item relating to section 
24309: 
‘‘24310. Amtrak restructuring mandate.’’. 
(2) Section 24102 (Definitions) of title 49, United 
States Code, is amended— 
(A) by inserting the following after section 
24102(5): 
‘‘(5a) ‘legacy equipment’ means the rolling 
stock required to provide intercity passenger rail 
service owned or leased by the National Railroad 
Passenger Corporation on the date of enactment of 
this chapter.’’; and 
(B) by inserting the following at the end: 
‘‘(10) ‘Year one’ means the next Federal fiscal 
year to begin after the date of enactment of the Pas-
senger Rail Investment Reform Act, except that the
term means the current Federal fiscal year if the 
date of enactment of the Act is within 60 days of 
the first day of the current Federal fiscal year. 
‘‘(11) ‘Year two’, ‘year three’, ‘year four’, ‘year 
five’, and ‘year six’ mean, respectively, the Federal 
fiscal year that follows year one by one, two, three, 
four, and five years, respectively.’’. 
SEC. 103. NORTH EAST CORRIDOR COMPACT. 
(a) CONSENT TO COMPACT.—(1) The States and Dis-
trict that constitute the Northeast Corridor, as defined in 
49 U.S.C. 24102, may enter into an agreement, not in 
conflict with a law of the United States and titled the 
‘‘North East Corridor Compact’’, to provide passenger rail 
service and to conduct related activities in the Northeast 
Corridor. 
(2) The North East Corridor Compact shall be sub-
mitted to Congress for its consent, and it is the sense of 
Congress that rapid consent to the Compact shall be a 
priority of Congress. 
(b) COMPACT COMMISSION.—(1) There is hereby es-
tablished a commission to be known as the ‘‘North East 
Corridor Compact Commission (hereinafter referred to in 
this section as the ‘Commission’)’’. The Commission shall 
be composed of five members as follows:
(A) Two members (or their designees), to be se-
lected by the Secretary of Transportation. 
(B) Two members (or their designees), to be se-
lected by agreement of the following government rep-
resentatives: 
(i) The governors of Maryland, Delaware, 
Pennsylvania, New Jersey, New York, Con-
necticut, Rhode Island, and Massachusetts. 
(ii) The mayor of the District of Columbia. 
(C) One member to be selected by the four 
members selected under paragraphs (1) and (2) of 
this subsection. 
(2) The following applies to the Commission: 
(A) Members shall be appointed for the life of 
the Commission. 
(B) A vacancy in the Commission shall be filled 
in the manner in which the original appointment was 
made. 
(C) Members shall serve without pay but shall 
receive travel expenses, including per diem in lieu of 
subsistence, in accordance with sections 5702 and 
5703 of title 5, United States Code. 
(D) The Chairman of the Commission shall be 
elected by the members.
(E) The Commission may appoint and fix the 
pay of such personnel as it considers appropriate. 
(F) Upon request of the Commission, the head 
of any department or agency of the United States 
may detail, on a reimbursable basis, any of the per-
sonnel of that department or agency to the Commis-
sion to assist it in carrying out its duties under this 
section. 
(G) Upon the request of the Commission, the 
Administrator of General Services shall provide to 
the Commission, on a reimbursable basis, the admin-
istrative support services necessary for the Commis-
sion to carry out its responsibilities under this sec-
tion. 
(c) FUNCTIONS.—(1) The Commission shall prepare 
for the consideration of and adoption by participating 
States, the District of Columbia, and the Secretary of 
Transportation an interstate compact that provides for the 
following: 
(A) Full authority for 99 years to succeed to 
the responsibilities of the National Railroad Pas-
senger Corporation as operator of the Northeast 
Corridor, subject to the provisions of a lease from 
the Department of Transportation.
(B) Execution of a lease of the Northeast Cor-
ridor from the Department of Transportation, for a 
period of 99 years, subject to appropriate provisions 
protecting the lessor’s interests, including reversion 
of all lease interests to the lessor in the event the 
lessee fails to meet its financial obligations or other-
wise assume financial responsibility for Northeast 
Corridor functions. 
(C) Responsibility for Corridor maintenance 
and improvement. 
(D) Operation of intercity passenger rail serv-
ice. 
(E) Arrangements for operation of freight rail-
road operations and commuter operations. 
(F) Assumption of financial responsibility for 
Northeast Corridor functions. 
(G) Authority to make use of the Corridor for 
non-rail purposes. 
(H) Participation by the Department of Trans-
portation, as the non-voting representative of the 
United States. 
(2) The compact terms shall, at a minimum, conform 
to the requirements of subsections (e) through (i) of this 
section.
(d) FINAL COMPACT PROPOSAL.—(1) The Commis-
sion shall submit a final compact proposal to member 
States, the District of Columbia, and the Federal Govern-
ment not later than the last day of Year One. 
(2) The Commission shall terminate on the 180th day 
following the date of transmittal of the final compact pro-
posal under this subsection. All records and papers of the 
Commission shall thereupon be delivered by the Adminis-
trator of General Services for deposit in the National Ar-
chives. 
(e) GOVERNANCE
AND FUNDING REQUIREMENTS 
FOR COMPACT.—(1) The governance provisions of the 
compact shall provide a mechanism to ensure voting rep-
resentation for the States, Commonwealths, and District 
that comprise the Northeast Corridor, and non-voting rep-
resentation for the Secretary of Transportation as an ex 
officio member participating in all Compact affairs. 
(2) The provisions of the compact shall establish the 
financial obligations of each compact member and shall 
provide for its management of rail services in the Cor-
ridors. 
(f) EMPLOYEE INTEREST REQUIREMENTS FOR COM-
PACT.—The employee provisions of the compact shall, at 
a minimum, provide the following with regard to employ-
ees in the Northeast Corridor if the Compact chooses to
replace the successor corporations for operation and main-
tenance of the physical plant or operation of passenger 
trains, or both: 
(1) Payment of any labor protection payments 
owed and not paid by the successor corporations es-
tablished under 49 U.S.C. 24310(b). 
(2) In the case of an employee who is employed 
by the National Railroad Passenger Corporation on 
the date of enactment of the Passenger Rail Invest-
ment Reform Act and who accepts employment by a 
successor corporation, a right of first refusal to ac-
cept a substantially similar position with the replace-
ment operator when the successor corporation is re-
placed. 
(g) FEDERAL INTEREST REQUIREMENTS FOR COM-
PACT.—The provisions of the Compact shall hold the 
United States Government harmless as to the actions of 
the Compact under the lease of rights to the Northeast 
Corridor by the United States Government. 
(h) COMPACT BORROWING AUTHORITY.—(1) The 
borrowing authority provisions of the compact may au-
thorize the compact to issue bonds or other debt instru-
ments from time to time in its discretion, for purposes 
that include paying any part of the cost of rail service im-
provements, construction, and rehabilitation and the ac-
quisition of real and personal property, including oper-
ating equipment, except that debt issued by the compact 
may be secured only by revenues to the compact and may 
not be a debt of the member States or of the Federal Gov-
ernment. 
(2) The debt authorized by this subsection shall 
under no circumstances be backed by the full faith and 
credit of the United States, and a grant made under the 
authority of this Act or under the authority of Part C of 
Subtitle V of title 49, United States Code, shall include 
an express acknowledgement by the grantee that the debt 
does not constitute an obligation of the United States. 
(i) ADOPTION OF COMPACT; TURNOVER.—(1) The 
members shall adopt a final compact agreement not later 
than the last day of Year Two, and the compact shall 
thereafter assume responsibility for all Corridor oper-
ations from the successor corporations on a date that is 
not later than 8 months following adoption of the compact, 
which date shall be known as the ‘‘NEC turnover date’’. 
(2) In the event that the members do not adopt the 
final compact agreement and make it operational under 
the schedule set forth in this section, the Secretary of 
Transportation shall assume control of the entity specified 
by 49 U.S.C. 24310(b)(2)(A) and shall make such legisla-
tive recommendations as the President judges necessary
and expedient to Congress that address the monetary con-
tributions by Northeast Corridor States and the District 
of Columbia that would be necessary to provide continued 
intercity passenger rail service in the Northeast Corridor. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized such sums as may be necessary to carry 
out the purposes of this section. 
SEC. 104. ASSISTANCE TO ADDRESS CAPITAL NEEDS. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary of Transportation, for capital ex-
penditures in compliance with capital spending plans de-
veloped under section 202 of this Act, including the Sec-
retary’s expenses related thereto, the following amounts: 
(1) Such sums as may be necessary for Year 
Three. 
(2) Such sums as may be necessary for Year 
Four. 
(3) Such sums as may be necessary for Year 
Five. 
(4) Such sums as may be necessary for Year 
Six. 
(b) OBLIGATION OPTIONS.—(1) Subject to paragraph 
(2), the Secretary may obligate the funds authorized by 
this section through grants to or cooperative agreements 
with States, the Passenger Rail Service Provider, the
North East Corridor Compact or another qualified Com-
pact, or through contracts with private companies. 
(2) Funds appropriated under this section shall not 
be obligated and not be disbursed from the Treasury for 
the North East Corridor Compact until it has been estab-
lished and is empowered and qualified to enter into con-
tracts for the expenditure of the funds. 
(c) ELIGIBILITY OF EXPENDITURES.—(1) The Fed-
eral share of expenditures for capital improvements under 
this section may be not more than 100 percent and is sole-
ly authorized for the purpose of funding deferred mainte-
nance, safety and security projects. Expenditures for ca-
pacity expansion are not authorized by this section. 
(2) Funds appropriated under this section may be ob-
ligated for an expenditure only if the Secretary has deter-
mined in writing that the expenditure on any railroad in-
frastructure investments is limited to a route or routes 
with a useful life of at least 5 years. 
SEC. 105. EMPLOYEE TRANSITION ASSISTANCE; AUTHOR-
IZATION. 
(a) PROVISION OF FINANCIAL INCENTIVES.—To fa-
cilitate the restructuring required by this title, the Sec-
retary is authorized to develop a program under which the 
Secretary may, in the Secretary’s discretion, provide 
grants for financial incentives to be provided to employees
of the National Railroad Passenger Corporation who vol-
untarily terminate their employment with the Corporation 
or the successor corporations and relinquish any legal 
rights to receive termination-related payments under any 
contractual agreement with the Corporation or the suc-
cessor corporations. 
(b) CONDITIONS FOR FINANCIAL INCENTIVES.—As a 
condition for receiving financial assistance grants under 
this section, the Corporation or the successor corporations 
must certify that— 
(1) the financial assistance results in a net re-
duction in the total number of employees equal to 
the number receiving financial incentives; 
(2) the financial assistance results in a net re-
duction in total employment expense equivalent to 
the total employment expenses associated with the 
employees receiving financial incentives; and 
(3) the total number of employees eligible for 
termination-related payments will not be increased 
without the express written consent of the Secretary. 
(c) AMOUNT OF FINANCIAL INCENTIVES.—The fi-
nancial incentives authorized under this section may be 
no greater than $50,000.00 per employee. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are hereby authorized to the Secretary such sums as may
be necessary to make grants to the National Railroad Pas-
senger Corporation or the successor corporation to fund 
termination-related payments to employees under existing 
contractual agreements until four years from the first day 
of Year One. 
SEC. 106. LIMIT ON OPERATING ASSISTANCE FOR LONG- 
DISTANCE ROUTES. 
(a) IN GENERAL.—Title 49, United States Code, is 
amended by inserting the following after section 24315: 
‘‘§ 24316. Limit on operating assistance for long-dis-
tance routes 
‘‘(a) GENERAL AUTHORITY.—(1) After the last day 
of Year One, the Secretary of Transportation may make 
grants for operating assistance under the authority of this 
section, and not under any other provision of law, to reim-
burse operators of long-distance routes, as defined in sec-
tion 24102, and corridor feeder routes for the operating 
expenses incurred in operating those routes to provide 
intercity passenger rail transportation. 
‘‘(2) The Secretary shall require that a grant under 
this section be subject to the terms, conditions, require-
ments, and provisions the Secretary decides are necessary 
or appropriate for the purposes of this section, including 
the definition of eligible expenses and the documentation 
of eligible operating losses on a quarterly basis.
‘‘(b) FEDERAL SHARE OF OPERATING EXPENSES.— 
(1) No funds appropriated under this Part shall be used 
to fund operating expenses of a long distance route after 
the last day of Year One, except as provided in paragraph 
(2) of this subsection. 
‘‘(2) Funds appropriated under this section may be 
used to reimburse the operator of a long-distance route 
or a corridor feeder route for operating expenses on that 
route provided that amounts reimbursed do not exceed the 
operating losses on the route and do not constitute a reim-
bursement per passenger mile greater than— 
‘‘(A) $0.40 during Year Two; 
‘‘(B) $0.20 during Year Three; 
‘‘(C) $0.10 during Year Four; and 
‘‘(D) $0.00 for each year thereafter. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this section, includ-
ing the Secretary’s expenses related thereto.’’ 
(b) CONFORMING AMENDMENTS.—(1) The analysis 
of chapter 243 of title 49, United States Code, is amended 
by inserting the following after the item relating to section 
24315: 
‘‘24316. Limit on operating assistance for long-distance routes.’’. 
(2) Section 24102 (Definitions) of title 49, United 
States Code, is amended—
(A) by inserting the following after section 
24102(4): 
‘‘(4a) ‘corridor feeder route’ means a portion of 
a long distance train or route that provides services 
between 
regional 
corridors 
by 
connecting 
to 
endpoints of the corridors.’’; and 
(B) by inserting the following after section 
24102(5a), as added by this Act: 
‘‘(5b) ‘long distance train’ or ‘long distance 
route’ means one of or a portion of the following 
trains or routes operated by the National Railroad 
Passenger Corporation on the date of enactment of 
this section: the Silver Star, the Three Rivers, the 
Cardinal, the Silver Meteor, the Empire Builder, the 
Capitol Limited, the California Zephyr, the South-
west Chief, the City of New Orleans, the Texas 
Eagle, the Sunset Limited, the Coast Starlight, the 
Lake Shore Limited, the Palmetto, the Crescent, the 
Pennsylvanian, and the Auto Train.’’. 
SEC. 107. REPEAL OF OBSOLETE AND EXECUTED PROVI-
SIONS OF LAW; OTHER. 
(a) IN GENERAL.—Title 49, United States Code, is 
amended by repeal of the following sections: 
(1) Section 24701 (Operation of basic system). 
(2) Section 24706 (Discontinuance).
(3) Section 24901 (Definitions). 
(4) Section 24902 (Goals and Requirements). 
(5) Section 24904 (General Authority). 
(6) Section 24906 (Eliminating highway at- 
grade crossings). 
(7) Section 24909 (Authorization of appropria-
tions). 
(b) REVISIONS
TO SECTION 24305.—(1) Section 
24305 (a) is amended by striking paragraph (2) and re-
numbering paragraph (3) as paragraph (2). 
(2) Section 24305(b) is amended by striking para-
graph (4) and renumbering paragraph (5) as paragraph 
(4) and paragraph (6) as paragraph (5). 
(3) Subsection 24305(f)(2) is amended by inserting 
before the word ‘‘Amtrak’’, the following ‘‘With regard to 
items acquired with funds provided by the Federal Govern-
ment,’’. 
(c) CONFORMING AMENDMENT.—The analysis of 
chapters 243, 247, and 249 are amended by deleting, as 
appropriate, items relating to the following sections: 
24307, 24701, 24706, 24901, 24902, 24904, 24906, 
24908, and 24909. 
(d) EFFECTIVE DATE.—The effective date of this 
section is the first day of Year One.
TITLE II—FINANCIAL REFORMS 
SEC. 201. LIMITATIONS ON AVAILABILITY OF GRANTS. 
(a) IN GENERAL.—Title 49, United States Code, is 
amended by inserting the following after section 24313: 
‘‘§ 24314. Transitional limitations on availability of 
grants 
‘‘(a) REQUIREMENTS PRIOR TO RESTRUCTURING.— 
A grant made to the National Railroad Passenger Cor-
poration under the authority of Part C of Subtitle V of 
this title between the first day of Year One, and the estab-
lishment and commencement of operations by the suc-
cessor corporations under section 24310 of this title may 
only be made subject to the following limitations: 
‘‘(1) The Secretary of Transportation shall not 
disburse funding to cover operating losses on a long- 
distance train route without first receiving and ap-
proving a grant request for that specific train route. 
‘‘(2) Each such grant request shall be accom-
panied by a detailed financial analysis and revenue 
projection justifying the Federal support to the Sec-
retary’s satisfaction. 
‘‘(3) The Secretary of Transportation and the 
Board of Directors of the Corporation shall ensure 
that, of the amount made available by appropria-
tions for capital and operating assistance to the Cor-
poration in a fiscal year, sufficient sums are re-
served to satisfy the contractual obligations of the 
Corporation to provide commuter and intrastate pas-
senger rail service. 
‘‘(4) Not later than December 31 prior to each 
fiscal year in which grants are made to the Corpora-
tion, the Corporation shall transmit to the Secretary 
of Transportation, the Committee on Commerce, 
Science, and Transportation of the Senate, the Com-
mittee on Transportation and Infrastructure of the 
House, and the House and Senate Committees on 
Appropriations a business plan for operating and 
capital improvements to be funded in the fiscal year 
under section 24104(a) of title 49, United States 
Code. 
‘‘(5) The business plan shall include a descrip-
tion of the work to be funded, along with cost esti-
mates and an estimated timetable for completion of 
the projects covered by the business plan. 
‘‘(6) Each month of each fiscal year in which 
grants are made to the Corporation, the Corporation 
shall submit to the Secretary of Transportation, the 
Committee on Commerce, Science, and Transpor-
tation of the Senate, the Committee on Transpor-
tation and Infrastructure of the House, and the