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be executed, shall be governed by the laws of the District 
of Columbia: Provided further, That none of the funds 
under this heading may be obligated or expended until the 
Corporation agrees to continue abiding by the provisions 
of paragraphs 1, 2, 5, 9, and 11 of the summary of condi-
tions for the direct loan agreement of June 28, 2002, in 
the same manner as in effect on the date of enactment 
of this Act: Provided further, That none of the funds pro-
vided in this Act may be used after March 1, 2006, to 
support any route on which Amtrak offers a discounted 
fare of more than 50 percent off the normal, peak fare: 
Provided further, That the preceding proviso does not 
apply to routes where the operating loss as a result of the 
discount is covered by a State and the State participates 
in the setting of fares: Provided further, That of the 
amounts made available under this heading not less than 
$18,500,000 shall be available for the Amtrak Office of 
Inspector General. 
CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL 
RAILROAD PASSENGER CORPORATION 
To enable the Secretary of Transportation to make 
quarterly grants to the National Railroad Passenger Cor-
poration for the maintenance and repair of capital infra-
structure owned by the Corporation, including railroad 
equipment, rolling stock, legal mandates and other serv-
ices, $925,000,000 to remain available until expended, of 
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which not to exceed $285,000,000 shall be for debt service 
obligations: Provided, That the Secretary may retain up 
to one-quarter of one percent of the funds under this head-
ing to fund the oversight by the Federal Railroad Adminis-
tration of the design and implementation of capital 
projects funded by grants made under this heading: Pro-
vided further, That the Secretary shall approve funding 
for capital expenditures, including advance purchase or-
ders of materials, for the Corporation only after receiving 
and reviewing a grant request for each specific capital 
grant justifying the Federal support to the Secretary’s 
satisfaction: Provided further, That none of the funds 
under this heading may be used to subsidize operating 
losses of the Corporation: Provided further, That none of 
the funds under this heading may be used for capital 
projects not approved by the Secretary of Transportation 
or on the Corporation’s fiscal year 2008 business plan: 
Provided further, That $35,000,000 of amounts made 
available under this heading shall be available until ex-
pended for capital improvements if the Corporation dem-
onstrates to the Secretary’s satisfaction that the Corpora-
tion has achieved operational savings and met ridership 
and revenue targets as defined in the Corporation’s busi-
ness plan: Provided further, That of the funds provided 
under this section, not less than $5,000,000 shall be ex-
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pended for the development and implementation of a man-
agerial cost accounting system, which includes average 
and marginal unit cost capability: Provided further, That 
within 90 days of enactment, the Department of Trans-
portation Inspector General shall review and comment to 
the Secretary of Transportation and the House and Sen-
ate Committees on Appropriations upon the strengths and 
weaknesses of the system being developed by the Corpora-
tion and how it best can be implemented to improve deci-
sion making by the Board of Directors and management 
of the Corporation: Provided further, That not later than 
180 days after the enactment of this Act, the Secretary, 
in consultation with the Corporation and the States on 
the Northeast Corridor, shall establish a common defini-
tion of what is determined to be a ‘‘state of good repair’’ 
on the Northeast Corridor and report its findings, includ-
ing definitional areas of disagreement, to the House and 
Senate Committees on Appropriations, the House Com-
mittee on Transportation and Infrastructure and the Sen-
ate Committee on Commerce, Science, and Transpor-
tation. 
INTERCITY PASSENGER RAIL GRANT PROGRAM 
To enable the Secretary to make grants to States in 
support of intercity passenger rail, $50,000,000 as author-
ized by section 26101 of title 49, United States Code, to 
remain available until expended: Provided, That States 
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may apply to the Federal Railroad Administration for 
grants up to 50 percent of the cost of planning and capital 
investments necessary to support improved intercity pas-
senger rail service that either requires no operating sub-
sidy or for which the State or States agree to provide any 
needed operating subsidy: Provided further, That priority 
shall be given to planning and infrastructure improvement 
projects that improve the safety, reliability and schedule 
of intercity passenger trains, reduce congestion on the 
host freight railroads, involve a commitment by freight 
railroads to an enforceable on-time performance of pas-
senger trains of 80 percent or greater, involve a commit-
ment by States of financial resources to improve the safety 
of highway/rail grade crossings over which the passenger 
service operates, and that protect and enhance the envi-
ronment, promote energy conservation, and improve qual-
ity of life: Provided further, That to be eligible for this 
assistance, States must include intercity passenger rail 
service as an integral part of Statewide transportation 
planning as required under 23 U.S.C. 135: Provided fur-
ther, That the specific project must be on the Statewide 
Transportation Improvement Plan at the time of the ap-
plication to qualify. 
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ADMINISTRATIVE PROVISION—FEDERAL RAILROAD 
ADMINISTRATION 
SEC. 150. The Secretary may purchase promotional 
items of nominal value for use in public outreach activities 
to accomplish the purposes of 49 U.S.C. 20134: Provided, 
That the Secretary shall prescribe guidelines for the ad-
ministration of such purchases and use. 
FEDERAL TRANSIT ADMINISTRATION 
ADMINISTRATIVE EXPENSES 
For necessary administrative expenses of the Federal 
Transit Administration’s programs authorized by chapter 
53 of title 49, United States Code, $92,500,000: Provided, 
That of the funds available under this heading, not to ex-
ceed $1,504,000 shall be available for travel and not to 
exceed $20,719,000 shall be available for the central ac-
count: Provided further, That any funding transferred 
from the central account shall be submitted for approval 
to the House and Senate Committees on Appropriations: 
Provided further, That none of the funds provided or lim-
ited in this Act may be used to create a permanent office 
of transit security under this heading: Provided further, 
That of the funds in this Act available for the execution 
of contracts under section 5327(c) of title 49, United 
States Code, $2,000,000 shall be reimbursed to the De-
partment of Transportation’s Office of Inspector General 
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