Amtrak , also known as the National Railroad Passenger Corporation, is a semipublic corporation that operates intercity passenger trains in the United States. It was created by Congress in 1970 and took over the operation of intercity trains in 1971. It is partly financed by the U.S. government. All members of Amtrak’s board of directors are nominated by the President or by the Department of Transportation.
For many years before 1970, the railroads had lost millions of dollars annually on passenger services. During that period, the cost of operating these trains had soared while revenues had declined because of competition from airline and automobile travel. Congress hoped a corporation with control over all intercity trains could salvage a basic network of passenger service, improve that service, and reduce costs.
When Amtrak was created, subsidies (grants) from Congress covered about 50 percent of its operating costs. But financial support has decreased as the purchase of new equipment has made Amtrak more efficient.
Amtrak owns and maintains the tracks on the busy “Northeast Corridor” between Boston, New York City, and Washington, D.C. Elsewhere, it pays freight railroads for the use of their tracks. Amtrak hires its own train crews, operates its own stations, and buys its own locomotives and cars. Amtrak also establishes routes and schedules, and handles ticket sales. It receives income from ticket sales and from carrying mail and express parcels.
