House, Senate agree on $2.5 billion for high-speed rail

Omits Infrastructure Bank

Steve Hawley, Dec 15, 09.

The House and Senate have agreed on a large spending bill that would give $2.5 billion to high-speed rail projects, according to Streetsblog Capitol Hill. The House had originally proposed $4 billion for high-speed rail, while the Senate only wanted to spend $1.2 billion.

The compromise bill also includes $150 million for sustainable communities and $150 million for the Washington, DC Metro system. It omits, however, $5 billion for a proposed National Infrastructure Bank, which negotiators said should be considered in a separate bill due to its complexity.

The US Public Interest Research Group and Transportation for America both released statements supporting the legislation.

The $2.5 billion is on top of $8 billion allocated by the American Recovery and Reinvestment Act in February. Those funds will likely go to incremental improvements in the nation’s rail system. The first grants were scheduled to be awarded in September, but due to overwhelming demand, the money will be awarded this winter.

US Rep. James Oberstar of Minnesota has also proposed including $50 billion for high-speed rail in the next federal transportation bill, which could take shape next year.