Northeast Corridor Improvement Project Budget Cuts

The President has proposed that the Northeast Corridor Improvement project budget of $2.5 billion be reduced by about $310 million. The Federal Railroad Administration (FRA) plans to save this amount by reducing spending on electrification, signaling, bridges, and stations. The present signaling system will be rehabilitated instead of being replaced by a new, more sophisticated system. Because of contract terminations, FRA will have spent about $30 million on designs and hardware that will be of little or no use. Other work might have to be eliminated from the project to make up the difference. The work originally envisioned for this project has been steadily reduced since its beginning, because costs consistently exceeded estimates. If the work still planned costs more than expected or if contract termination costs are higher than currently estimated, FRA would have to eliminate more work from the project. Work cutbacks could lead to increased future maintenance costs, less passenger comfort, less on-time reliability, and reduced safety for passengers, crew members, and the public. About $23 million of the savings in station work comes from money budgeted for improving the Union Station in Washington, D.C.