Statement of Administration Policy: H.R. 422 - Local Rail Service Reauthorizing Act

(House)
(Wyden (D) Oregon and 22 others)

The Administration opposes enactment of H.R. 422. If H.R. 422 were presented to the President, the Secretary of Transportation would recommend that it be vetoed.

The Local Rail Service Assistance Program (LRSAP) was created to address a crisis afflicting American railroads in the pre-deregulation era of the 1970's. Since the partial deregulation achieved in the Staggers Rail Act of 1980, however, the industry's return on investment has doubled and America's railroads are now financially stable. Private financing is now readily available to the railroad industry, and 20 states have enacted their own LRSA programs to deal with any financial needs peculiar to certain localities. The LRSAP has therefore essentially served its purpose, and should not be reauthorized.