NC Transportation Official Testifies to US House on Funding for High Speed Rail

Senate Bill 250, and its companion bill, House Bill 2329, would authorize Amtrak to sell $12 billion in bonds during the next 10 years. North Carolina could be eligible for $500-700 million of that.

"This legislation, if adopted, will establish for the first time a dedicated funding source of much-needed money necessary to improve our national rail infrastructure and to develop high speed rail in the Southeast as well as in other corridors across the country," said State Transportation Secretary Lyndo Tippett.

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 repaid through tax credits. Individual states would be responsible for providing matching funds.

Sam Williams, president of the Metro Atlanta Chamber of Commerce and a member of the Southeastern Economic Alliance also will testify to lend support to the high-speed rail funding legislation. The Southeastern Economic Alliance, comprised of 13 chambers of commerce from six southeastern states, was formed to outline the business case and support development of high-speed rail in the southeast. North Carolina members include Charlotte, Raleigh and Winston-Salem.

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.

While the legislation would provide significant new money to improve passenger rail services, it also would benefit freight rail operations since most passenger trains operate on freight tracks. This legislation would not impact funding for ongoing transit and highway projects.

"In the past several years, our country has made substantial new investments in our highways, transit and aviation infrastructures," said King. "It's time that we provide additional financing-through a stable, long-term, dedicated funding source-to support and improve our rail infrastructure."