House Resolution 2950, the Rail Infrastructure Development and Expansion Act for the 21st Century (RIDE-21), would authorize states to sell $36 billion in bonds during the next 10 years for high speed rail development. North Carolina could be eligible for $1.2 to 1.5 billion of that. King testified on behalf of the States for Passenger Rail Coalition, a grass roots organization of 21 states working together to improve and expand passenger rail services.

"We need a high speed rail system that can supplement and compete with other modes of transportation," said State Transportation Secretary Lyndo Tippett. "This legislation, if adopted, will establish for the first time a much-needed dedicated funding source that is necessary to improve our national rail infrastructure and to develop high speed rail in eleven corridors across the country."

Specifically the additional money would be used to upgrade existing railroads, construct new high-speed rail lines, purchase high-speed trains and improve or eliminate numerous railroad-highway crossings. The bonds, purchased with private funds based on federally authorized bonding authority, would be exempt from federal taxes. Individual states would be responsible for issuing and managing the bonds.

North Carolina has been working with Virginia, South Carolina and Georgia to extend high-speed rail from Washington D.C.---first to Richmond, Raleigh and Charlotte, then Charlotte to Atlanta/Macon and finally from Raleigh to Columbia, Savannah and Jacksonville. Already North Carolina and Virginia have begun the first round of environmental studies necessary to develop a high-speed rail system. The two states also have created the Virginia North Carolina High Speed Rail Commission to provide legislative oversight for the project.

While the new federal bond legislation would provide significant new money to improve passenger rail services, it also would benefit freight rail operations by authorizing states to provide loans for needed freight infrastructure improvements. This legislation would not impact funding for ongoing transit and highway projects.

"It is in our nation's best interest that we have a vibrant, well built and well operated intercity rail corridors," said King. "The states are willing to do their share to plan, develop and support such a system, but they need a federal partner to help."

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NOTE: The hearing is scheduled for 2 p.m. Tuesday in 2617 Rayburn House Office Building. A live audio broadcast will be available the committee's website at www.house.gov/transportation.

Click here to view testimony.