Tentative Deal Should Keep Amtrak, and Mail, Rolling

Share this content:
Amtrak said late last week that it had not accepted all of the conditions of a tentative bailout agreement with the Bush administration, but it expected a deal would come together in a few days.


The U.S. Transportation Department and Amtrak reached a tentative agreement, averting a threatened June 26 shutdown of the rail line unless it received a $200 million loan.


Under the proposed deal, Amtrak would get an immediate $100 million loan from the U.S. Treasury. Within weeks, the Transportation Department would ask Congress for a loan or direct grant of another $100 million to $170 million, which would carry Amtrak through the end of the fiscal year. Though congressional leaders said the second loan probably would be approved, there was no agreement on how much Amtrak would receive in the next fiscal year, beginning Oct. 1.


In return, Amtrak would agree to conditions that include improving its financial reporting and banning salary raises and bonuses for executives through Sept. 30. Those conditions were already being observed, Amtrak officials said.


Amtrak handles 5 percent of the U.S. Postal Service's mail, with most of that volume coming from First-Class mail and periodicals moving along the East Coast from Washington to Boston.


close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here