An Act to amend the Rail Passenger Service Act to provide financial assistance to the National Railroad Passenger Corporation, and for other purposes.
PL 94-25 (H.R.4975), enacted 05/26/1975

89 STAT. 90 
PUBLIC LAW 94-25—MAY 26, 1975 
Public Law 94-25 
94th Congress 
May 26, 1975 
[H.R. 4975] 
Amtrak 
Improvement Act 
of 1975. 
45 u s e 501 note. 
Customs 
inspection and 
immigration 
procedures. 
Experimental 
routes. 
Seasonal routes, 
studies. 
Discontinuance 
of service. 
An Act 
To amend the Rail Tassenger Service Act to provide financial assistance to the 
National Railroad Passenger Corporation, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled. That this Act may 
be cited as the "Amtrak Improvement Act of 1975". 
SEC. 2. Section 303(d) of the Kail Passenger Service Act (45 U.S.C. 
543(d)), relating to officers of the Corporation, is amended by insert-
ing immediately before the period at the end of the third sentence 
thereof the following: "; except that this limitation upon compensa-
tion shall not apply in the case of the president of the Corporation 
if the board determines with respect to such officer that a higher level 
of compensation is necessary and is not higher than $85,000 or the gen-
eral level of compensation paid officers of railroads in positions of 
comparable responsibility, whichever is lesser". 
SEC. 3. Section 305 of such Act (45 U.S.C. 545), relating to general 
powers of the Corporation, is amended by striking out subsection (f), 
as added by section 4 of the Amtrak Improvement Act of 1974 (88 
Stat. 1527), and inserting in lieu thereof the following: 
"(h) The Secretary of the Treasury and the Attorney General shall 
(consistent with the effective enforcement of the immigration and 
customs laws) establish and maintain, in cooperation with the Corpo-
ration, en route customs inspection and immigration procedures aboard 
trains operated in international intercity rail passenger service, which 
procedures will be convenient for passengers and will result in the most 
rapid possible transit in international intercity rail passenger service.". 
SEC. 4. (a) The first sentence of section 308(b) of such Act (45 U.S.C. 
548 (b)), relating to reports, is amended by striking out "the preceding-
year" and inserting in lieu thereof "the preceding fiscal year". 
(b) Sectioji 308(c) of such Act (45 U.S.C. 548(c)), relating to 
reports, is amended by adding at the end thereof the following new 
sentence: "Beginning in 1976, the Secretary's report on the Corpora-
tion shall be made part of the Department of Transportation annual 
report to the Congress." 
SEC. 5. Section 403(c) of such Act (45 U.S.C. 563(c)), relating to 
experimental routes, is amended— 
(1) by striking out "the Secretary" in the first sentence and in 
the third sentence and inserting in lieu thereof in each such sen-
tence "the Board of Directors"; and 
(2) by inserting immediately after "the Secretary" in the sec-
ond sentence ", in consultation with the Board of Directors,". 
SEC. 6. Section 403(b) of such Act (45 U.S.C. 563(b)) is amended 
by adding at the end thereof the following new sentence: "The Corpo-
ration, at the request of States, may conduct studies during the fiscal 
year ending June 30, 1976', to determine benefits of seasonal routes to 
recreational areas. 
SEC. 7. Section 404(b) of such Act (45 U.S.C. 564(b)), relating 
to discontinuance of service, is amended— 
(1) by striking out "July 1, 1975" in paragraph (1) and para-
graph (3) and inserting in lieu thereof in each such paragraph 
"October 1, 1976"; and 
(2) by striking out "July 1, 1975" in the second sentence of 
paragraph (2) and inserting in lieu thereof "March 1, 1977". 
SEC. 8. Section 404 of such Act (45 U.S.C. 564), relating to discon-
tinuance of service, is amended by adding at the end thereof the 
following new subsection: 
PUBLIC LAW 94-25—MAY 26, 1975 
89 STAT, 91 
"(c) (1) Within 120 days after the date of enactment of this sub-
section, the board of directors of the Corporation shall study, develop, 
and submit to the Secretary, to the Commission, and to the Congress an 
initial proposal setting forth criteria and procedures under which the 
Corporation would be authorized to add or discontinue routes and 
services. Such criteria and procedures shall include, but need not be 
limited to— 
" ( A ) methods for evaluating the economic and environmental 
impact of any addition or discontinuance of intercity rail passen-
ger service including an evaluation of the economic impact to the 
Corporation and to the nation of the addition of new service points 
along existing or new inter-city routes within the Northeast 
Corridor; 
"(B) methods for evaluating the effects of any such addition 
or discontinuance on connecting parts of the national system of 
intercity rail passenger service; 
"(C) methods for estimating, with respect to any such addition 
or discontinuance, the population to be aifected, the demand for 
intercity rail passenger service, the revenue per passenger mile, 
and the effect on capital costs and revenue of the Corporation; 
"(D) methods for evaluating the availability of alternative 
modes of transportation; 
" ( E ) methods for giving public notice of, and obtaining public 
comments on, any such addition or discontinuance; and 
" ( F ) methods for establishing a priority ranking system for 
routes and trains to meet the needs of the public convenience and 
necessity for a balanced tranportation system, taking into consid-
eration the criteria and procedures referred to in subparagraphs 
(A) through (E) of this paragraph, together with such other 
criteria as the board of directors deems appropriate. 
"(2) Within 150 days after the date of enactment of this subsection, 
the Secretary and the Commission shall submit to the Congress and to 
the board of directors of the Corporation their comments on the initial 
proposal setting forth criteria and procedures developed by the board 
of directors of the Corporation, together with such recommendations 
as they may deem appropriate. 
" (3) Within 30 days after receipt of comments submitted by the Sec-
retary and the Commission under paragraph (2) of this subsection, the 
board of directors of the Corporation shall consider such comments 
and shall submit to the Congress a final proposal setting forth criteria 
and procedures under which the Corporation would be authorized to 
add or discontinue routes and services within the national system of 
intercity rail passenger service. The criteria and procedures set forth 
in such final proposal shall take effect at the end of the first period of 
60 calendar days of continuous session of the Congress after the date 
of its submission, unless either the Senate or the House of Representa-
tives adopts a resolution during such period stating that it does not 
approve such final proposal. If no resolution is adopted as provided 
in the preceding sentence, the Corporation may add or discontinue 
routes and services in accordance with the criteria and procedures set 
forth in the final proposal, notwithstanding the provisions of section 
13a of the Interstate Commerce Act or of section 404(b) (3) of this 
Act, relating to discontinuance of service within the basic system. 
Service beyond the basic system referred to in section 404(b) (2) of 
this Act shall not be discontinued under this subsection until March 1, 
1977. For purposes of this paragraph, continuity of session of the 
Congress is broken only by an adjournment sine die, and the days on 
which either House is not in session because of an adjournment of more 
than 3 days to a day certain are excluded from the computation of the 
60-day period.". 
Criteria and 
procedures, 
submittal to 
Secretary of 
Transportation, 
Interstate 
Commerce 
Commission, and 
Congress. 
Comments and 
recommen-
dations, submittal 
to Congress and 
National Railroad 
Corporation. 
Final proposal, 
submittal to 
Congress. 
49 u s e 13a. 
Ante, p. 90. 
89 STAT. 92 
PUBLIC LAW 94-25—MAY 26, 1975 
Financial 
investment 
advisory panel. 
Appropriation 
authorization. 
45 use 563. 
Guarantee of 
loans. 
SEC. 9. Such Act is amended by striking out title V, relating to the 
financial investment advisory panel (45 U.S.C. 581-583). 
SEC, 10. Section oOl(a) of such Act (45 U.S.C. 601(a)), relating to 
authorization of appropriations, is amended— 
(1) by striking out "in subsequent fiscal years a total of 
$534,300,000" in the first sentence and inserting in lieu thereof 
"in subsequent fiscal years through June 30, 1975, a total of 
$597,300,000"; and 
(2) by inserting immediately after the first sentence the fol-
lowing "There are authorized to be appropriated to the Secretary 
for the benefit of the Corporation (1) for the payment of operat-
ing expenses for the basic system, and for operating and capital 
expenses of intercity rail passenger service provided pursuant to 
section 403(b) of this Act, $350,000,000 for fiscal vear 1976, 
$105,000,000 for the transition period of July 1, 1976, through 
September 30, 1976 (hereafter in this section referred to as the 
'transition period^) and $.355,000,000 for fiscal year 1977; and (2) 
for the payment of capital expenditures of the basic system, 
$110,000,000 for fiscal year 1976; $25,000,000 for the transition 
period; and $110,000,000 for fiscal year 1977. Of the amounts 
authorized by clause (1) of the preceding sentence, not more than 
$25,000,000 for fiscal year 1976, $7,000,000 for the transition 
period, and $30,000,000 for fiscal year 1977 shall be available for 
payment of operating and capital expenses of intercity rail pas-
senger service provided pursuant to section 403(b) of this Act.". 
SEC. 11. Section 602 of such Act (45 U.S.C. 602), relating to guar-
antee of loans, is amended— 
(1) by striking out subsection (a) and inserting in lieu thereof 
the following: 
"(a) The Secretary is authorized, on such terms and conditions as 
he may prescribe, and with the approval of the Secretary of the Treas-
ury, to guarantee any lender or lessor against loss of principal and 
interest or other contractual commitments, including rentals, on secu-
rities, obligations, leases, or loans (including refinancing thereof) 
issued to finance the upgrading of roadbeds, and the purchase or lease 
by the Corporation or an agency of new rolling stock, rehabilitation of 
existing rolling stock, reservation systems, switch and signal systems, 
and other capital equipment and facilities necessary for the improve-
ment of rail passenger service. The maturity date or term of such 
securities, obligations, leases, or loans, including all extensions and 
renewals thereof, shall not be later than 20 years from their date of 
issuance."; 
(2) by striking out subsection (c) and inserting in lieu thereof 
the following: 
"(c) Any guarantee made by the Secretary under this section shall 
not be terminated, canceled or otherwise revoked; shall be conclusive 
evidence that such guarantee complies fully with the provisions of this 
Act and of the approval and legality of the principal amount, inter-
est rate, lease rate, and all other terms of the securities, obligations, 
leases, or loans and of the guarantee, and shall be valid and incon-
testable in the hands of a holder of a guaranteed security, obligation, 
lease, or loan, except for fraud or material misrepresentation on the 
part of such holder."; 
(3) by striking out "obligations, or loans" in subsection (d) 
and inserting in lieu thereof "obligations, leases, or loans"; 
(4) by striking out "obligation, or loan" each place it appears 
in subsection (g) and inserting in lieu thereof in each such place 
"obligation, lease, or loan"; and 
(5) by striking out "a loan" in subsection (i) and inserting in 
lieu thereof "a lease or loan". 
PUBLIC LAW 94-25—MAY 26, 1975 
89 STAT. 91 
SEC. 12. Section r01(c)(l) of such Act (45 U.S.C. 621(c)(1)), 
relating to liquidation of the assets of any railroad recipient of a 
loan or loan guarantee, is amended by adding at the end thereof the 
following new sentence: "In the case of a railroad in reorganization 
(as defined in section 102(12) of the Regional Rail Reorganization 
Act of 1973) which has an agreement with the Corporation to provide 
intercity rail passenger service on the date of enactment of this sen-
tence, the sale by such railroad of any right-of-way or track over 
which the Corporation is required to provide intercity rail passenger 
service on such date of enactment (as an experimental route designated 
by the Secretary before such date of enactment) shall be deemed to 
be a liquidation of the assets of such railroad under the first sentence 
of this paragraph, and the Secretary shall acquire such right, title, 
and interest in such right-of-way or track, and restore it to such 
condition, as may be necessary to permit the Corporation to provide 
intercity rail passenger service over the designated route.". 
SEC. 13. Section 4(i) (2) of the Department of Transportation Act, 
as added by the Amtrak Improvement Act of 1974 (94 U.S.C. 1653 
_(i) (2)), is amended by striking out the last two sentences and insert-
ing in lieu thereof the following: "Any grant made by the Secretary 
under this paragraph shall not exceed 60 per centum of the total cost 
of conversion of a railroad passenger terminal into an intermodal 
transportation terminal.". 
Liquidation of 
assets. 
45 use 702. 
Railroad terminal 
conversion, 
grants, limitation. 
49 use 1653. 
Approved May 26, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-119 (Comm. on Interstate and Foreign Commerce). 
SENATE REPORT No. 94-65 accompanying S. 852 (Comm. on Commerce). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
Apr. 24, considered and passed House. 
May 8, 13, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 11, No. 22: 
May 26, Presidential statement.