President Clinton Tuesday signed Amtrak reauthorization legislation which will trigger payment of $2.3 billion for capital improvements set aside in the budget agreement to bail out the nearly bankrupt railroad.
The reauthorization also changes several of Amtrak's business practices, including the elimination of statutes whereby Congress dictated train routes. Now, with a new board of directors confirmed by the Senate, Amtrak will decide route structures based on profitability.
The bill also eliminates the current statute that guarantees laid-off Amtrak workers six years of severance pay, and repeals the statutory ban on Amtrak contracting out work if it would cause layoffs.
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