HR 3211 IH1S 
‘‘(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
HR 3211 IH1S 
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. NORTHEAST CORRIDOR COMPACT. 
(a) CONSENT TO COMPACT.—(1) The States and Dis-
trict that constitute the Northeast Corridor, as defined in 
section 24102 of title 49, United States Code, may enter 
into an agreement, not in conflict with a law of the United 
States and titled the ‘‘Northeast Corridor Compact’’, to 
provide passenger rail service and to conduct related ac-
tivities in the Northeast Corridor. 
(2) The Northeast 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 Northeast Cor-
ridor 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.
HR 3211 IH1S 
(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 subparagraphs (A) and (B) 
of this paragraph. 
(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.
HR 3211 IH1S 
(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
HR 3211 IH1S 
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 
nonrail purposes. 
(H) Participation by the Department of Trans-
portation, as the nonvoting 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.
HR 3211 IH1S 
(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:
HR 3211 IH1S 
(1) Payment of any labor protection payments 
owed and not paid by the successor corporations es-
tablished under section 24310(b) of title 49, United 
States Code. 
(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
HR 3211 IH1S 
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 section 24310(b)(2)(A) of title 49, United States Code, 
and shall make such legislative recommendations as the 
President judges necessary and expedient to Congress that 
address the monetary contributions by Northeast Corridor
HR 3211 IH1S 
States and the District of Columbia that would be nec-
essary to provide continued intercity passenger rail service 
in the Northeast Corridor. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated 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
HR 3211 IH1S 
Northeast 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 Northeast 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
HR 3211 IH1S 
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 per employee. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are hereby authorized to be appropriated to the Secretary
HR 3211 IH1S 
of Transportation such sums as may be necessary to make 
grants to the National Railroad Passenger Corporation or 
the successor corporation to fund termination-related pay-
ments 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.
HR 3211 IH1S 
‘‘(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—
HR 3211 IH1S 
(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).
HR 3211 IH1S 
(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.
HR 3211 IH1S 
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-
HR 3211 IH1S 
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 of Representatives, and the House of Rep-
resentatives and Senate Committees on Appropria-
tions a business plan for operating and capital im-
provements 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 of Represent-
HR 3211 IH1S 
atives, and the House of Representatives and Senate 
Committees on Appropriations a supplemental report 
regarding the business plan, which shall describe the 
work completed to date, any changes to the business 
plan, and the reasons for such changes. 
‘‘(7) A grant may not be used for operating ex-
penses or capital projects that is not approved by 
the Secretary of Transportation or an element of the 
Corporation’s current fiscal year business plan, or 
that is obligated or expended unless the Corporation 
certifies, as part of the grant agreement, that it has 
complied with and will abide by the following re-
quirements: 
‘‘(A) The Corporation’s management will 
maintain financial controls and accounting 
transparency to the satisfaction of the Sec-
retary, including developing or enhancing any 
existing capacity separately to report—
‘‘(i) all revenue and expenses associ-
ated with rail operations by route; and 
‘‘(ii) budgeted and actual expenditures 
for all capital investments. 
‘‘(B) The Corporation’s management will 
provide to the Board of Directors, the Depart-
ment of Transportation and Congress its
HR 3211 IH1S 
Monthly Performance Report. The Corporation 
shall also make available to the Department of 
Transportation the same details and reports on 
its financial performance that it makes avail-
able to Amtrak management, at the same time 
that it provides those reports and details to 
Amtrak management. 
‘‘(C) The Corporation shall expend funds 
only for the continuation of existing plants and 
services. With the exception of expenditures for 
which it obtains written approval from the De-
partment of Transportation, The Corporation 
will not use of any of its funds for actual ex-
pansion or planning for expansion of rail serv-
ice, including high speed rail service. 
‘‘(D) The Corporation has negotiated with 
its employees substantial operating cost reduc-
tions needed to make its operations competitive 
with private-sector service providers. 
‘‘(b) 
REQUIREMENTS
FOLLOWING
RESTRUC-
TURING.—Any grant made directly to either of the suc-
cessor corporations under the authority of part C of sub-
title V of this title may only be made subject to the fol-
lowing limitations:
HR 3211 IH1S 
‘‘(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 shall en-
sure that, of the amount made available by appro-
priations for capital and operating assistance in a 
fiscal year, sufficient sums are reserved to satisfy 
the successor corporation’s contractual obligations, if 
any, with respect to commuter and intrastate pas-
senger rail service. 
‘‘(4) Not later than December 31 prior to each 
fiscal year in which grants are made, the successor 
corporations shall each transmit to the Secretary of 
Transportation a business plan for operating and 
capital improvements to be funded in the fiscal year. 
‘‘(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.
HR 3211 IH1S 
‘‘(6) Each month of each fiscal year in which 
grants are made, the successor corporations shall 
each submit to the Secretary of Transportation a 
supplemental report regarding the business plan, 
which shall describe the work completed to date, any 
changes to the business plan, and the reasons for 
such changes. 
‘‘(7) A grant may not be used for operating ex-
penses or capital projects that is not approved by 
the Secretary of Transportation or an element of the 
current fiscal year business plan, or that is obligated 
or expended unless the successor corporation agrees, 
as part of the grant agreement, to abide by the fol-
lowing requirements: 
‘‘(A) Management will maintain financial 
controls and accounting transparency to the 
satisfaction of the Secretary, including devel-
oping or enhancing any existing capacity sepa-
rately to report—
‘‘(i) all revenue and expenses associ-
ated with rail operations by route; and 
‘‘(ii) budgeted and actual expenditures 
for all capital investments. 
‘‘(B) Management of each successor cor-
poration shall make available to the Depart-
HR 3211 IH1S 
ment of Transportation the same details and 
reports on its financial performance that it 
makes available internally, at the same time 
that it provides those reports and details inter-
nally. 
‘‘(C) Funds will be spent only on existing 
plants and services.’’. 
(b) CONFORMING AMENDMENTS.—The analysis of 
chapter 243 of title 49, United States Code, is amended 
by inserting the following after the item relating to section 
24313:
‘‘24314. Transitional limitations on availability of grants.’’.
SEC. 202. SPENDING PLANS FOR CAPITAL BACKLOG RE-
DUCTION. 
(a) IN GENERAL.—Within 6 months after Year One 
begins, and as a condition of grants to the National Rail-
road Passenger Corporation between that date and the im-
plementation of the restructuring required under section 
24310 of title 49, United States Code, the Corporation 
shall prepare a capital spending plan that addresses cap-
ital needs, consistent with the funding levels authorized 
to be provided for Year One and each fiscal year thereafter 
through Year Six, for—
(1) Northeast Corridor capital assets; 
(2) capital assets on long-distance routes other 
than on the Northeast Corridor; and
HR 3211 IH1S 
(3) capital assets on short-distance routes other 
than the Northeast Corridor. 
(b) APPROVAL BY THE SECRETARY AND THE COM-
PACT.—(1) The Corporation shall submit the capital 
spending plan prepared under this section to the Secretary 
of Transportation for review and approval. The plan shall 
be implemented only after approval by the Secretary, and 
with any modifications specified by the Secretary. 
(2) The Secretary of Transportation shall require 
that the plan be updated at least annually. 
(3) On and after creation of Northeast Corridor Com-
pact, the Secretary shall make no grants to the Compact 
for Northeast Corridor for capital investments, except in 
accordance with a capital spending plan prepared by the 
Compact and approved by both the Compact and the Sec-
retary. The same requirements shall apply to grants made 
to States and other Compacts under this section. 
SEC. 203. REDEMPTION OF COMMON STOCK. 
(a) VALUATION.—The Secretary of Transportation 
shall arrange, at the National Railroad Passenger Cor-
poration’s expense, for a valuation of all assets and liabil-
ities of the Corporation to be performed by the Secretary 
of the Treasury, or by a contractor selected by the Sec-
retary of the Treasury. Such valuation shall be conducted 
in accordance with criteria and requirements to be deter-
HR 3211 IH1S 
mined by the Secretary, in the Secretary’s discretion, and 
shall be completed within 6 months after Year One begins. 
(b) REDEMPTION.—(1) Prior to the transfer of assets 
to the Secretary directed by section 204 of this Act, and 
within 9 months after Year One begins, the Corporation 
shall redeem all common stock in the Corporation issued 
prior to the date of enactment of this Act at the book 
value of such stock, based on the valuation performed 
under subsection (a). 
(2) No provision of this Act, or amendments made 
by this Act, provide to the owners of the common stock 
a priority over holders of indebtedness or other stock of 
the Corporation. 
(c) ACQUISITION THROUGH EMINENT DOMAIN.—In 
the event that the Corporation and the owners of its com-
mon stock have not completed the redemption of such 
stock by a date that is within 9 months after Year One 
begins, the Corporation shall exercise the eminent domain 
provisions contained in section 24311 of title 49, United 
States Code, as amended by this Act, to acquire that 
stock. The valuation performed under subsection (a) shall 
be deemed to constitute just compensation except to the 
extent that the owners of the common stock demonstrate 
that the valuation is less than the constitutional minimum 
value of the stock.
HR 3211 IH1S 
(d) AMENDMENT
OF 49 U.S.C. 24311.—Section 
24311 of title 49, United States Code, is amended—
(1) by striking ‘‘or’’ at the end of subsection 
(a)(1)(A); 
(2) by striking the period at the end of sub-
section (a)(1)(B) and substituting ‘‘; or’’; and 
(3) by inserting the following after subsection 
(a)(1)(B): 
‘‘(C) necessary to redeem the Corporation’s 
common stock from any holder thereof, including a 
rail carrier.’’. 
(e) CONVERSION OF PREFERRED STOCK TO COM-
MON.—(1) Subsequent to the redemption of the common 
stock in the Corporation issued prior to the date of enact-
ment of this Act, the Secretary of Transportation shall
convert the one share of the preferred stock of the Cor-
poration retained under section 204 of this Act for ten 
shares of common stock in the Corporation. 
(2) The Corporation shall not issue any other com-
mon stock without the express written consent of the Sec-
retary. 
SEC. 204. RETIREMENT OF PREFERRED STOCK; TRANSFER 
OF ASSETS. 
(a) TRANSFER.—Not later than 30 days after the re-
demption or acquisition specified under section 203 of this
HR 3211 IH1S 
Act, the Corporation shall, in return for the consideration 
specified in subsection (c), transfer to the Secretary of 
Transportation title to the following assets: 
(1) The portions of the Northeast Corridor cur-
rently owned or leased by the Corporation as well as 
any improvements made to these assets. The assets 
transferred to the Secretary shall include the rail 
right-of-way, stations, track, signal equipment, elec-
tric traction facilities, bridges, tunnels, and all other 
improvements owned by Amtrak between Boston, 
Massachusetts, and Washington, District of Colum-
bia (including the route through Springfield, Massa-
chusetts, and the routes to Harrisburg, Pennsyl-
vania, and Albany, New York, from the Northeast 
Corridor mainline). 
(2) Chicago Union Station and rail-related as-
sets in the Chicago metropolitan area. 
(3) All other track and right-of-way, stations, 
repair facilities and other real property owned or 
leased by the Corporation. 
(b) EXISTING ENCUMBRANCES.—(1) With regard to 
any assets described in subsection (a) that the Corporation 
has provided as security or collateral for a debt entered 
into prior to the date of enactment of this Act, the Cor-
poration shall transfer its underlying legal interest in such
HR 3211 IH1S 
asset to the Secretary, provided, however, that the Cor-
poration shall remain liable for the debt secured by the 
asset. 
(2) The obligation of the National Railroad Pas-
senger Corporation to repay in full any indebtedness to 
the United States incurred since January 1, 1990, is not 
affected by this Act or an amendment made by this Act. 
(c) CONSIDERATION.—In consideration for the assets 
transferred to the United States under subsection (b), the 
Secretary shall—
(1) deliver to the Corporation all but one share 
of the preferred stock of the Corporation held by the 
Secretary and forgive the Corporation’s legal obliga-
tion to pay any dividends, including accrued but un-
paid dividends as of the date of transfer, evidenced 
by the preferred stock certificates; and 
(2) release the Corporation from all mortgages 
and liens held by the Secretary that were in exist-
ence on January 1, 1990. 
(d) AGREEMENT.—(1) Prior to accepting title to the 
assets transferred under this section, the Secretary shall 
enter into an agreement with the Corporation under which 
the Corporation will exercise on behalf of the Secretary 
care, custody, and control of the assets to be transferred.
HR 3211 IH1S 
(2) The agreement shall identify in detail the specific 
functions of the Corporation’s employees and equipment, 
and the specific numbers and locations of the employees 
and equipment associated with each function, that would 
be needed for continuation of commuter and freight rail 
service in the event that the Corporation were to cease 
operation, and identify those actions that would be re-
quired to ensure that such functions can be continued on 
an interim basis to avoid any interruption in commuter 
or freight rail service on the Northeast Corridor. 
(e) FURTHER TRANSFERS.—(1) The Secretary may, 
for appropriate consideration, transfer title to all or part 
of Chicago Union Station and rail-related assets in the 
Chicago metropolitan area acquired under this section to 
a regional public transportation agency that has signifi-
cant operations in Chicago Union Station on the date of 
enactment of this Act. 
(2) The Secretary may, for appropriate consideration, 
transfer to the underlying states title to real estate prop-
erties owned by the Corporation between Boston, Massa-
chusetts, and Washington, District of Columbia, that con-
stitute the route through Springfield, Massachusetts, and 
the routes to Harrisburg, Pennsylvania, and Albany, New 
York, from the Northeast Corridor mainline.
HR 3211 IH1S 
(3) The Secretary may, for appropriate consideration, 
transfer title to all or part of the assets acquired under 
subsection (a)(3) to a State, a public agency, a railroad, 
or other entity deemed appropriate by the Secretary. 
(4) All financial consideration determined by the Sec-
retary to be appropriate consideration for the transfer of 
the assets described in paragraphs (1) through (3) shall 
be used exclusively to reduce the Corporation’s long-term 
debt that exists on the date of enactment. 
SEC. 205. REAL ESTATE AND ASSET SALES; OTHER. 
(a) IN GENERAL.—The Amtrak Board of Directors 
shall undertake and complete not later than the last day 
of Year Three, the disposition of all stations, track, and 
other facilities outside the Northeast Corridor mainline, 
including property conveyed to the Secretary of Transpor-
tation under section 204 of this Act. 
(b) PROCEEDS OF LIQUIDATION.—Notwithstanding 
section 3302 of title 31, United States Code, any proceeds 
from the liquidation of assets under this section shall—
(1) be credited as an offsetting collection to the 
account that finances grants for debt and interest 
payments under section 206 of this Act to the Pas-
senger Rail Service Provider specified under section 
24310 of title 49, United States Code; and 
(2) remain available until expended.
HR 3211 IH1S 
SEC. 206. MANAGEMENT AND TRANSFER OF SECURED 
DEBT. 
(a) NEW DEBT PROHIBITION.—Except as approved 
by the Secretary of Transportation to refinance existing 
secured debt, the Corporation shall not enter into any obli-
gation secured by assets of the Corporation after the date 
of enactment of this Act. This section does not prohibit 
unsecured lines of credit used by the Corporation or any 
subsidiary for working capital purposes. 
(b) SECURED DEBT TRANSFER.—(1) Upon establish-
ment of the Passenger Rail Service Provider specified 
under section 24310 of title 49, United States Code, and 
the transfer of ownership of the existing rolling stock, all 
debt secured by the rolling stock shall be transferred to 
and become a liability solely of the Passenger Rail Service 
Provider.
(2) Upon establishment of the Northeast Corridor 
Compact under section 103 of this Act, the secured debt 
associated with fixed assets in the Northeast Corridor 
shall be transferred to and become a liability solely of the 
Northeast Corridor Compact. 
(c) AUTHORIZATION.—(1) There are authorized to be 
appropriated to the Secretary of Transportation for grants 
to the Passenger Rail Service Provider to pay principal 
and interest payments on secured debt existing on the date 
of enactment of this Act the following amounts:
HR 3211 IH1S 
(A) Such sums as may be necessary in Year 
Two. 
(B) Such sums as may be necessary in Year 
Three. 
(C) Such sums as may be necessary in Year 
Four. 
(D) Such sums as may be necessary in Year 
Five. 
(E) Such sums as may be necessary in Year 
Six. 
(2) The funding authorized by this section shall 
not—
(A) modify the extent or nature of any indebt-
edness of the National Railroad Passenger Corpora-
tion to the United States in existence of the date of 
enactment of this Act; 
(B) change the private nature of Amtrak’s or 
its successors’ liabilities; or 
(C) imply any Federal guarantee or commit-
ment to amortize Amtrak’s outstanding indebted-
ness. 
SEC. 207. TRANSITION ASSISTANCE. 
(a) YEAR ONE ASSISTANCE.—There are authorized 
to be appropriated to the Secretary of Transportation for 
grants to the National Railroad Passenger Corporation for
HR 3211 IH1S 
operating and capital expenses such sums as may be nec-
essary in Year One. 
(b) YEAR TWO SUCCESSOR CORPORATION OPER-
ATING ASSISTANCE.—There are authorized to be appro-
priated to the Secretary such sums as may be necessary 
for grants to—
(1) the Passenger Rail Service Provider for op-
erating expenses of all services except long-distance 
trains and routes in Year Two; and 
(2) the Passenger Rail Infrastructure Manager 
for capital expenses in Year Two. 
(c) ADMINISTRATIVE EXPENSES
OF COMPACTS.—
There are authorized to be appropriated to the Secretary 
such sums as may be necessary for grants for the adminis-
trative expenses of interstate compacts in Years One 
through Three. 
(d) EXPENSES OF AMTRAK.—There are authorized to 
be appropriated to the Secretary such sums as may be 
necessary for grants for the administrative expenses of 
Amtrak in Years Two through Six. 
(e) GRANTS MADE AFTER YEAR TWO.—After the 
last day of Year Two, the Secretary may not enter into 
a grant agreement under this Act, other than section 
206(c), or part C of title V of title 49, United States Code,
HR 3211 IH1S 
unless each other party to the grant agreement is a State, 
regional compact, or other public entity. 
TITLE III—GRANTS AND OTHER 
ASSISTANCE FOR INTERCITY 
PASSENGER RAIL SERVICE 
SEC. 301. CAPITAL ASSISTANCE FOR INTERCITY PAS-
SENGER RAIL SERVICE. 
(a) IN GENERAL.—Part C of subtitle V of title 49, 
United States Code, is amended by inserting the following 
after chapter 243: 
‘‘CHAPTER 
244—INTERCITY 
PASSENGER 
RAIL SERVICE CORRIDOR CAPITAL AS-
SISTANCE
‘‘Sec. 
‘‘24401. Definitions; effective date. 
‘‘24402. Capital investment grants to support intercity passenger rail service. 
‘‘24403. Project management oversight. 
‘‘24404. Use of capital grants to finance first-dollar liability of grant project. 
‘‘24405. Authorization of appropriations.
‘‘§ 24401. Definitions; effective date 
‘‘(a) DEFINITIONS.—In this chapter—
‘‘(1) ‘applicant’ means a State, an Interstate 
Compact (including the Northeast Corridor Compact 
as specified in section 103 of the Passenger Rail In-
vestment Reform Act), or a public agency estab-
lished by one or more States and having responsi-
bility for providing intercity passenger rail service.
HR 3211 IH1S 
‘‘(2) ‘capital project’ means a project within a 
corridor plan or program for—
‘‘(A) acquiring, constructing, supervising, 
or inspecting equipment or a facility for use in 
intercity passenger rail service, expenses inci-
dental to the acquisition or construction (in-
cluding designing, engineering, location sur-
veying, mapping, environmental studies, and ac-
quiring rights-of-way), payments for the capital 
portions of rail trackage rights agreements, 
passenger rail-related intelligent transportation 
systems, highway-rail grade crossing improve-
ments on routes used for intercity passenger 
rail service, relocation assistance, acquiring re-
placement housing sites, and acquiring, con-
structing, relocating, and rehabilitating replace-
ment housing; 
‘‘(B) rehabilitating, remanufacturing, or 
overhauling rail rolling stock and facilities used 
primarily in intercity passenger rail service; and 
‘‘(C) the first-dollar liability costs for in-
surance related to the provision of intercity pas-
senger rail service. 
‘‘(3) ‘intercity passenger rail service’ means 
transportation services with the primary purpose of
HR 3211 IH1S 
passenger transportation between towns, cities, and 
metropolitan areas by rail, including high-speed rail. 
‘‘(b) EFFECTIVE DATE.—This chapter is effective on 
the first day of Year Two. 
‘‘§ 24402. Capital investment grants to support inter-
city passenger rail service 
‘‘(a) GENERAL AUTHORITY.—(1) The Secretary of 
Transportation may make grants under this section to an 
applicant to assist in financing the capital costs of facili-
ties and equipment necessary to provide intercity pas-
senger 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
requirements for the disposition of net increases in value 
of real property resulting from the project assisted under 
this section. 
‘‘(3) A grant under this section may not be made for 
a project or program of projects that qualifies for financial 
assistance under chapter 53 of this title. 
‘‘(b) PROJECT AS PART OF APPROVED PROGRAM.—
(1) The Secretary may not approve a grant for a project 
under this section unless the Secretary finds that the 
project is part of an approved corridor plan and program
HR 3211 IH1S 
developed under section 5303 of this title and that the 
applicant or recipient has or will have the legal, financial, 
and technical capacity to carry out the project (including 
safety and security aspects of the project), satisfactory 
continuing control over the use of the equipment or facili-
ties, and the capability and willingness to maintain the 
equipment or facilities. 
‘‘(2) An applicant shall provide sufficient information 
upon which the Secretary can make the findings required 
by this subsection. 
‘‘(3) If an applicant has not selected the proposed op-
erator of its service competitively, the applicant shall pro-
vide written justification to the Secretary showing why the 
proposed operator is the best, taking into account price 
and other factors, and that use of the proposed operator 
will not increase the capital cost of the project. 
‘‘(4) An applicant shall demonstrate that it has 
agreed with the railroad over which the intercity passenger 
rail service will operate concerning the applicant’s oper-
ating and capital plans. 
‘‘(c) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.—(1)(A) The Secretary may issue a letter of intent 
to an applicant announcing an intention to obligate, for 
a major capital project under this section, an amount from
HR 3211 IH1S 
future available budget authority specified in law that is 
not more than the amount stipulated as the financial par-
ticipation of the Secretary in the project. 
‘‘(B) At least 30 days before issuing a letter under 
subparagraph (A) of this paragraph or entering into a full 
funding grant agreement, the Secretary shall notify in 
writing the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate 
and the House of Representatives and Senate Committees 
on Appropriations of the proposed letter or agreement. 
The Secretary shall include with the notification a copy 
of the proposed letter or agreement as well as the evalua-
tions and ratings for the project. 
‘‘(C) The issuance of a letter is deemed not to be 
an obligation under sections 1108(c) and (d), 1501, and 
1502(a) of title 31, United States Code, or an administra-
tive commitment. 
‘‘(D) An obligation or administrative commitment 
may be made only when amounts are appropriated. 
‘‘(2)(A) The Secretary may make a full funding grant 
agreement with an applicant. The agreement shall—
‘‘(i) establish the terms of participation by the 
United States Government in a project under this 
section;
HR 3211 IH1S 
‘‘(ii) establish the maximum amount of Govern-
ment financial assistance for the project; 
‘‘(iii) cover the period of time for completing 
the project, including a period extending beyond the 
period of an authorization; and 
‘‘(iv) make timely and efficient management of 
the project easier according to the law of the United 
States. 
‘‘(B) An agreement under this paragraph obligates 
an amount of available budget authority specified in law 
and may include a commitment, contingent on amounts 
to be specified in law in advance for commitments under 
this paragraph, to obligate an additional amount from fu-
ture available budget authority specified in law. The 
agreement shall state that the contingent commitment is 
not an obligation of the Government and is subject to the 
availability of appropriations made by Federal law and to 
Federal laws in force on or enacted after the date of the 
contingent commitment. Interest and other financing costs 
of efficiently carrying out a part of the project within a 
reasonable time are a cost of carrying out the project 
under a full funding grant agreement, except that eligible 
costs may not be more than the cost of the most favorable 
financing terms reasonably available for the project at the 
time of borrowing. The applicant shall certify, in a way
HR 3211 IH1S 
satisfactory to the Secretary, that the applicant has shown 
reasonable diligence in seeking the most favorable financ-
ing terms. 
‘‘(3)(A) The Secretary may make an early systems 
work agreement with an applicant if a record of decision 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) has been issued on the project and 
the Secretary finds there is reason to believe—
‘‘(i) a full funding grant agreement for the 
project will be made; and 
‘‘(ii) the terms of the work agreement will pro-
mote ultimate completion of the project more rapidly 
and at less cost. 
‘‘(B) A work agreement under this paragraph obli-
gates an amount of available budget authority specified 
in law and shall provide for reimbursement of preliminary 
costs of carrying out the project, including land acquisi-
tion, timely procurement of system elements for which 
specifications are decided, and other activities the Sec-
retary decides are appropriate to make efficient, long-term 
project management easier. A work agreement shall cover 
the period of time the Secretary considers appropriate. 
The period may extend beyond the period of current au-
thorization. Interest and other financing costs of effi-
ciently carrying out the work agreement within a reason-
HR 3211 IH1S 
able time are a cost of carrying out the agreement, except 
that eligible costs may not be more than the cost of the 
most favorable financing terms reasonably available for 
the project at the time of borrowing. The applicant shall 
certify, in a way satisfactory to the Secretary, that the 
applicant has shown reasonable diligence in seeking the 
most favorable financing terms. If an applicant does not 
carry out the project for reasons within the control of the 
applicant, the applicant shall repay all Government pay-
ments made under the work agreement plus reasonable in-
terest and penalty charges the Secretary establishes in the 
agreement.
‘‘(4) The total estimated amount of future obligations 
of the Government and contingent commitments to incur 
obligations covered by all outstanding letters of intent, full 
funding grant agreements, and early systems work agree-
ments may be not more than the amount authorized under 
section 24405 of this title, less an amount the Secretary 
reasonably estimates is necessary for grants under this 
section not covered by a letter. The total amount covered 
by new letters and contingent commitments included in 
full funding grant agreements and early systems work 
agreements may be not more than a limitation specified 
in law.
HR 3211 IH1S 
‘‘(d) FEDERAL SHARE OF NET PROJECT COST.—
(1)(A) Based on engineering studies, studies of economic 
feasibility, and information on the expected use of equip-
ment or facilities, the Secretary shall estimate the net 
project cost. 
‘‘(B) A grant for the project shall not exceed the 
specified percentage of the project net capital cost estab-
lished for the year the grant is approved, as follows: 
‘‘(i) 100 percent in the case of approval for 
Year Two. 
‘‘(ii) 80 percent in the case of approval for Year 
Three. 
‘‘(iii) 60 percent in the case of approval for 
Year Four. 
‘‘(iii) 50 percent in the case of approval for 
Year Five, and thereafter. 
‘‘(C) The Secretary shall give priority in allocating 
future obligations and contingent commitments to incur 
obligations to grant requests seeking a lower Federal 
share of the project net capital cost. 
‘‘(2) Up to an additional 30 percent of project net 
capital cost may be funded from amounts appropriated to 
or made available to a department or agency of the Fed-
eral Government that are eligible to be expended for trans-
portation.
HR 3211 IH1S 
‘‘(e) UNDERTAKING PROJECTS
IN ADVANCE.—(1) 
The Secretary may pay the Federal share of the net cap-
ital project cost to an applicant that carries out any part 
of a project described in this section according to all appli-
cable procedures and requirements if—
‘‘(A) the applicant applies for the payment; 
‘‘(B) the Secretary approves the payment; and 
‘‘(C) before carrying out the part of the project, 
the Secretary approves the plans and specifications 
for the part in the same way as other projects under 
this section. 
‘‘(2) The cost of carrying out part of a project in-
cludes the amount of interest earned and payable on bonds 
issued by the applicant to the extent proceeds of the bonds 
are expended in carrying out the part. However, the 
amount of interest under this paragraph may not be more 
than the most favorable interest terms reasonably avail-
able for the project at the time of borrowing. The appli-
cant shall certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable diligence 
in seeking the most favorable financial terms. 
‘‘(3) The Secretary shall consider changes in capital 
project cost indices when determining the estimated cost 
under paragraph (2) of this subsection.’’.
HR 3211 IH1S 
‘‘§ 24403. Project management oversight 
‘‘(a) PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—To receive Federal financial assistance for a 
major capital project under this chapter, an applicant 
must prepare and carry out a project management plan 
approved by the Secretary of Transportation. The plan 
shall provide for—
‘‘(1) adequate recipient staff organization with 
well-defined reporting relationships, statements of 
functional responsibilities, job descriptions, and job 
qualifications; 
‘‘(2) a budget covering the project management 
organization, appropriate consultants, property ac-
quisition, utility relocation, systems demonstration 
staff, audits, and miscellaneous payments the recipi-
ent may be prepared to justify; 
‘‘(3) a construction schedule for the project; 
‘‘(4) a document control procedure and record-
keeping system; 
‘‘(5) a change order procedure that includes a 
documented, systematic approach to handling the 
construction change orders; 
‘‘(6) organizational structures, management 
skills, and staffing levels required throughout the 
construction phase;
HR 3211 IH1S 
‘‘(7) quality control and quality assurance func-
tions, procedures, and responsibilities for construc-
tion, system installation, and integration of system 
components; 
‘‘(8) material testing policies and procedures; 
‘‘(9) internal plan implementation and reporting 
requirements; 
‘‘(10) criteria and procedures to be used for 
testing the operational system or its major compo-
nents; 
‘‘(11) periodic updates of the plan, especially 
related to project budget and project schedule, fi-
nancing, and ridership estimates; and 
‘‘(12) the recipient’s commitment to submit a 
project budget and project schedule to the Secretary 
each month. 
‘‘(b) SECRETARIAL OVERSIGHT.—(1) The Secretary 
may use no more than 0.5 percent of amounts made avail-
able in a fiscal year for capital projects under this chapter 
to enter into contracts to oversee the construction of such 
projects. 
‘‘(2) The Secretary may use amounts available under 
paragraph (1) of this subsection to make contracts for 
safety, procurement, management, and financial compli-
HR 3211 IH1S 
ance reviews and audits of a recipient of amounts under 
paragraph (1). 
‘‘(3) The Federal Government shall pay the entire 
cost of carrying out a contract under this subsection. 
‘‘(c) ACCESS TO SITES AND RECORDS.—Each recipi-
ent of assistance under this chapter shall provide the Sec-
retary and a contractor the Secretary chooses under sub-
section (b) of this section with access to the construction 
sites and records of the recipient when reasonably nec-
essary.
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
regulations necessary to carry out this section. The regula-
tions shall include—
‘‘(1) a definition of ‘major capital project’ for 
this section; 
‘‘(2) a requirement that oversight begin during 
the preliminary engineering stage of a project, un-
less the Secretary finds it more appropriate to begin 
oversight during another stage of a project, to maxi-
mize the transportation benefits and cost savings as-
sociated with project management oversight; 
‘‘(3) a deadline by which all grant applications 
for a fiscal year must be submitted that is early 
enough to permit the Secretary to evaluate all timely 
applications thoroughly before making grants;
HR 3211 IH1S 
‘‘(4) a formula based on population, track miles 
of railroad, and passenger miles traveled in the prior 
fiscal year by which one-half of the funds appro-
priated for capital grants for each fiscal year are to 
be allocated among the States; 
‘‘(5) a requirement that, if a State does not 
timely apply for its share of formula grant funds 
under paragraph (4) of this subsection, those funds 
will be made available to other States under para-
graph (6) of this subsection; and 
‘‘(6) criteria by which the Secretary will allocate 
one-half of the funds appropriated for capital grants 
for each fiscal year, including at least projected rid-
ership, passenger rail and intermodal connections, 
congestion and air quality mitigation, underserved 
communities, and the effect of the grant on whether 
existing service will continue. 
‘‘§ 24404. Use of capital grants to finance first-dollar 
liability of grant project 
‘‘Notwithstanding the requirements of section 24402 
of this title, the Secretary of Transportation may approve 
the use of capital assistance under this chapter to fund 
self-insured retention of risk for the first tier of liability 
insurance coverage for rail passenger service associated 
with the capital assistance grant, but the coverage may