Transcripts For CSPAN2 House Hearing On Amtraks Response To COVID-19 Pandemic 20240712

The subcommittee will come to order. I ask unanimous consent the chair can declare a recess at any time. Without objection so ordered. I want to remind members of key regulations on rules and then members must also continue to use the video function and then to experience connectivity issues or other technical problems. And then let us know as soon as possible so you can receive assistance. And you can call the committees for a technical assistance. Members may also not participate remotely any other proceeding occurring simultaneously. It is the responsibility of each member and mute your microphone prior to speaking. If i hear any inadvertent background noise lastly please mute your microphone. All standard rules apply. We will have a good faith effort to address the connectivity issues and participate fully members will have five minutes to ask questions to insert a document into the record, please have the staff email it. This hearing is also live streamed for the public to view and with that i will recognize myself for five minutes for opening statements. Good morning i want to welcome everyone with that response from covid19 as you can see both members and their witnesses for us to safely conduct the hearing i hope everyones family and loved ones are safe. Before we get started this is my first opportunity to introduce our guest there cannot be a more tougher on a tougher time. Okay. I think we have it muted. I wish mr. Flynn well. Economicallyan those that have been hardhit i understand there are serious financial issues. We will hear specifically about this directly from mr. Flynn. Ive always been a strong advocate for and amtrak because its an Important Public Service a National Rail service. It is critical all of those associated with amtrak always keep in mind it is first and foremost a national Public Service. So in addition to be a staunch advocate for the men and women who work at amtrak especially in midst of the pandemic that has caused Economic Hardship for millions of americans and their families. That brings me to the issue that was recently announced. Congress recognize the financial difficulty it was experiencing because of the steep drop infina ridership with more than 1 billion of fate sharedp funding with the understanding part of the funds is for the furlough now they will furlough over 2000 employees on octobe october 1st is extremely disappointing. We understand technically we are about to begin a new fiscal yea year. But one of the biggest reservations i and other members have is for them to come to congress to request additional funding to help keep workers on payroll. Amtrak did not submit a supplementaryhe request until ten days after passage. Amtrak is just now submitting their amended request to congress 11 months before it expired to implement the furlough. Frustrations aside Congress Needs to act quickly to avoid these cuts. I first they are not saving that much money because they would be eligible for Unemployment Insurance second we try to cut service that what we tried under president clinton in 1994. On a bipartisan basis led by missouri republicans and mississippi republicans b they it rejected that restoring service to seven days a week because it hurts Rural Communities and undermines amtraks role and doesnt save that much money. Congresses view has not changed in the past 25 years. Finally we believe that whenever this pandemic is over amtrak should go back to the service it hadad before. We cannot just flip the switch thosey will lose workers because of these tpolicies. Ultimately the cuts are misguided through our National Rail service. Finally that while i strongly support that including the route from northeastern illinois and municipalities. Too often amtrak will take money from congress and then ignore themt directive. But especially when congruent amtrak needs much more from congress right now. With that i recognize the Ranking Member for his opening statement. Thank you mr. Chairman for holding this hearing. Thank you to our witnesses for beingg here today. It is amtraks response to the covid19 pandemic saving over 1 billion to t offset losses but since that time it has significantly cut routes and announce laying off 20 percent of the workforce which is almoste 4000 people by octobe october 1st, 2020. And took the funding request from 2 billion almost 5 billion and is receiving and requesting record amounts of funding while cutting services. They also recently requested the requirements to purchase permits in Foreign Countries when i asked for more specifics amtrak did not even give the most basic information including the cost and origin of equipment. Amtrak should not be spending taxpayer provided bailout money on foreignid goods wells shutting down jobs and services i look forward to hearing how they will respond to the crisis but also how to me the congressionally mandated requirements thank you again to all the witnesses for being here today i yield back. We now recognize the Ranking Member for a full statement. Sorry about that. Thank you for holding this hearing and the witnesses for attending. Obviously todays a great. Opportunity to review amtrak with the covid19 pandemic coming off its best year ever ask actually making a profit in 2020 wasas expected the first time in almost 50 years. But after the pandemic obviously ridership dropped by 95 percent revenues are down 82 percent compared to the 2019 levels. The ceo first appearance before the committee before taking over in april and i welcome mr. Flynn after so many years working in various role in the private sector and to experience high level positions in the Aviation Industry and also working on the railroad and many members of the committee on bothtr sides work with bill and i have always found him to be both effective and forthright. That will be the same for amtrak and his leadership i look forward to him with his update on the covid19 response and also to hear about his future plans for amtrak including recovery from the pandemic to restore ridership and the congressional mandate so with thatng thank you and i look forward to the discussion i yield back. Thank you. We now welcome the witnesses on the panel mr. William flynn president of amtrak, the Transportation Communications union and amy griffith president of local 1460 and president and chief executive officer of the rail association. We look forward to your testimony. The false statements are included in the record. You can limit summer our of your oral testimony 25 minutes and with that you may proceed for five minutes. Good morning chairman and the Ranking Member and members of the subcommittee. Thank you for the kind will command the opportunity to address the committee. Im recently appointed president and ceo and i am here to discuss our companys response to covid19. I have to start my remarks by thinking of dedicated employees who have more than risen to the pandemic challenge. The highest priority will always be the safety of our customers and employees and im truly proud of the teams h efforts. Amtrak has been an early leader to Institute Social distancing and employee protection mask requirements and now testing for all employees on the as requested basis we also part nearing with the leading university to look at airflow and ventilation and to strengthen protocols thank you for the invested america act and if enacted be have the funding we require to modernize the system to add more trains and routes across the nationd and received the th hosty treatment from railroads that your constituents deserve simply put it is the game changer we always hope for. Amtrak did deliver record performance fiscal year 2019 and 20 was set to be another record year. But as the pandemic started in march ridership plummeted by 95 percent. In february we carried more than 80000 daily passengers in april there was less than 4000. Thanks to the c. A. R. E. S. Act we managed to survive these difficult times but unfortunately our ridership and revenue is still down more than 80 percent. We recently updated our forecast fiscal year 21 we now anticipate getting 49 billion in funding to operate and invest in our network, support partners, and address various congressional concerns such as avoiding employee furloughs and to maintain service. Given the current uncertainty of supplemental funding at the appropriations levels we must be prudent to prepare for the situation at hand. Therefore we are implementing our plans to adjust our Service Beginning in october. As difficult as these actions are to take these costsaving measuresse measures and we anticipate going through 250 million each month at this rate we would be forced to take drastic measures with longlasting impact on the company, employees and network. As you know we already reduced service in the northeast corridor how we plan to extend temporary frequency adjustments to most longdistance trains. Let me be clear these adjustments are temporary. There is no secret plan or a hidden agenda as suggested many districts have Long Distance service i have heards yourti concerns loud and clear i am 100 percent committed to a longdistancer network and the futurere we continue to make investments that demonstrate this commitment today and i purchasedd two the service line. Until we must make adjustments as we cannot continue to fund a workforce too large for the number of passengers we areot serving. Many states have told us they can unable work with amtrak unless we reduce our cost to align with ridership. Having grown up in a Railroad Family i know how hard that can be a were working hard to minimize impacts to employees. Earlier this year we implemented several cost saving measures but with the lack of writers and uncertain funding plan to reduce the c s workforce by 2050 with management positions we will do everything in our power to return employees to work as soon as possible and then we will provide extended Health Care Coverage during this period. Innercity Passenger Rail is one of the safest and most safest and sustainable forms of transportation. Amtrak stands ready to grow and serve america in large cities and Rural Communities providing thousands of good living wage jobs for skilled employees in the process. Know that im committed to working through this crisis with you and other stakeholders to manage these challenges thank you for your time and support and i look forward to your questions. Thank you mr. Flynn. Now we will move on to mr. Mattea i hope i pronounced your name correctly. Thank you chairman you did. And thank you to the Ranking Member on the impact of covid19. With approximately 1600 workers i am here on behalf of amtrak to protect workers to reauthorize the expansion and they continue to put food on the table and with the plans drying up amtrak is at the edge of a fiscal cliff of severe Workforce Service reductions the house of representatives passed that had 10 billion of operating Emergency Response and the requirement to maintain the workforce on behalf of amtrak workers to pass the house bill and with the transportation sector. Last week they finally froze the supplemental request and with those longdistance frequencies. Unfortunately we also began amtrak receives no supplemental funding it will be catastrophic. That would be 60 percent of the workforce. And at great risk to themselves and their families. Some have died. You can understand why they are so scared for their future. While many of had the luxury of working from home we try to keep the economy moving. And those that are losing for o. Unfortunately in the furlough expansion experience insurance is already expired. We need to pull assistance under immense pressure. President trumps over Unemployment Insurance attempts to provide 300 our standard for Unemployment Insurance. So to make it worse with Unemployment Insurance and where it is needed so this means not only will they not receive the extended benefits but it will be reduced by 6 percent. But this house of representatives the heroes act included the expansion as well as moving from sequestration. And with that economic collapse and those are left to wither on the vine. Thank you for your opportunity to testify. Thank you. Ms. Griffin and you may proceed. On behalf of the transport Workers Union of america to discuss the damaging impact has had on the front line workers representing over 150,000 Members Airlines and transit systems and other industries. Mb and other critical frontline workers have suffered greatly from the virus and the economic fallout. More than 90 percent of members including all at amtrak our frontline transportation workers who have been deemed essential. Nearly 10 percent of our members have tested positive for have been quarantined from the virus. To discount from the emotional and mental tools the on the told the virus has taken on me in the colleagues. And to provide essential services across the country i greatly appreciate to share both my own experience this is anen issue that is all too familiar Onboard Service president of transport Workers Union most importantly i feel it is my duty to serve under these dire circumstances amtrak workers rely on each other more but at the beginning ofof the crisis when they could not find masker sanitizer with access to protective equipment is no longer an issue and with that frontline workforce while working my regular position i was notified by my supervisor that a contact had been exposed to an employees who tested positive. Despite that significantly increased chance of spreading the virus, the Railroad Still expected me to work the rest of my schedule days without seeking s testing. I elevated my concerns and then to expose hundreds of passengers needlessly and then taken out of service at the end of the route to park on the next dayge i was not remove service. Afterrv again elevating the situation to my union i was finally taken offline and told to quarantine for 14 days. My experience is typical of the approach amtrak is taken toward the workforce with the spread of covid19 as a result of the coronavirus they have chosen to leave these positions o vacant making it harder to sanitize properly the workforce is working hard thevery day with unnecessary handicaps to keep the traveling public safe. That is why it is disheartening amtrak will for low 20 percent beginning in october. Per management as many 10000 workers could be impacted. And with that current pandemic and economic recovery and with immediate action from congress. Amtrak management these are not necessary in any case. Just at the front set of frontline workers in pandemic pay cuts return to full pay. And then to remain significantly reduced hours for the foreseeable future. We urge amtrak to reverse course to prioritize rankandfile and frontline workers that interact directly with writers rather than themselves. If they could come together to provide four. 5 billion in support for the railroad. This doesnt just keep thousands employed but safe and healthy rail travel. I look forward to any questions you may have. You may now proceed. Av thank you chairman and Ranking Member for all the subcommittee for your leadership on Passenger Rail. We are the Largest Group speaking for 40 million americans for commuters we know amtrak is making tough choices and has plans take shape with great essential service cutting 12 out of 15 longdistance routes only hree times a week. It would have staggering damage in the heartland. With minuscule savings. We appreciate what they laid out we are also glad to see how the appropriators responded including s 10 billion over fiscal year one but this is the right answer for the longterm. And with that supplemental request with nationwide Daily Service. And then to have a catastrophic flow and that those commuter trains as well to have essential Daily Service with that hardship for those of communities 62 Million People live in flyover country. And a quarter of seniors over 65. There was always an outside roll even more true today and passengers with Health Problems to make socially distance trips onn amtrak. And annie ridership was down 90 percent but longdistance routes were 50 percent now today it makes up 45 percent of amtrak revenue versus 21 percent a year ago to the largest single share since march. That could change on octobe octt if congress cant act. And in 2018 we developed the rail Service Benefits model and we use it to look at the plan and we found those 12 routes contribute from four. 8 billion from those served every single year i can also report cutting Daily Service could drop two. 3 billiondollar bond on flyover country whilett only saving 213 million that if the plan of nine months stretches over a full year thank you. And those of we head especially hard of the 67 cities and states from sacramento and san antonio touching nearly every corner of the country. From eight states from illinois to washington new orleans between louisiana produces 134 million of economic benefits. It can wipe out as much is 88 million and simply put to drastically reduce with only three days a week making connectionsre difficult or impossible with three. 1 billion from the heartland it seems to be bad public policy. Amtrak tried this in 1994 and then they skip the right for the same reason. And less maintenance and to earn badly needed revenue . Congress should not stand by with those hundreds of hardworking towns and at the very least preserve being Daily Service will stave off disaster from flyover country. Thank you. Each member is recognized for five minutes. And mentioning in her testimony that the amtrak town hall on july 29th that the 401 k match and the pay cut that would be utterly november. And those cutting vital Train Service. It was accurate during that town hall meeting and to reduce expenses and refer to that in my remarks cutting the 401 k matc match. The program put in place years earlier when we eliminated the defined benefit pension plan in exchange for eliminating what used to be a very attractive pension plan but the lower cost 401 k match. And that was appropriate actioncu to take it wasnt immediate takehome pay but we clear but ofd course there were no cuts of any benefits at thatat time. And so considering the equities of his situation to make sense to restore the 401 k match and i elected to take no compensation when i joined the company at the beginning offfo april in view of the economic crisis the company is suffering. And compare those two other management teams and Transportation Industries have taken, i believe those cats were larger and deeper in terms of how far down the management ranks they went. B i do appreciate that. Should this be restored to management while the furlough frontline workers . My view is we are restoring a basic level of pay w considering all the equities to ensure that we retain a Smaller Group ofof management people. That will not be looked on well but lets move on. And then will he commit to resend the furlough and the cuts and with that four. 9 million instructs us to resend the furlough and the service cuts, we will do that. If congress does not provide any additional losupplemental funding in the covid relief bil bill, what other cuts can we expect quick. Excuse me mr. Chairman. Is that provided 2 billion and nothing else . Lets say the 2 billion was provided. We would be in a very very difficult position the cash burn isas about 250 million per month right now. And we would have to make very dramatic reductions across the country to stave off bankruptcy i would argue in the longterm. Certainly very significant challenges on behalf of our customers with our employees in the nearterm. Just substantial reduction with the elimination of other services if thats the cash burn they have with no supplemental funding. And to provide the funding we want to know what additional cuts may be. Are you willing to work with me to resolve the issues i have including contract disputes in illinois or request a stop on the Lincoln Service . I want to get you on record if you will work with me to help to resolve these local issues. I certainly will, mr. Chairman. I did meet with the metra ceo and we talked about useful measures and me will continue to work to resolve our differences. And the leading cause is the failure to comply with the longstanding obligation with preference over the tracks can you clarify that remark because it shows only accounts for a smalltr percentage on what ive examined. We publish every month in our statistics Available Online the number of minutes we delay we experience on each Host Railroad and have done that for quite a long period ofmb time. We routinely find passenger trains are not given preference over freight and and is our experience thats why we were encouraged to provide is a private right of action to enforce the statutory rights. I have been closely following the metrics and the standards to understand the need to protect ridership as a safe and positive experience. It would make sense and he explained how to link then your schedules with theed metrics . To have that rule issued and we are in correspondence and communication with the fra with the schedules in place. With the working relationship of the Class One Railroad and days speak with them regularly and in some cases at least once a week on a different schedule with the issues we may have. Can you commit to lengthen schedules where appropriate . Nd i am not sure i can answer that question i dont know what appropriate means. We have a scheduled requirement of 80 percent ontime arrival. I dont know what that appropriate means from the Railroad Point of view. We need to dig into the t details we made a final rule on standards and metrics to do tha that. Thank you. I yield back. Thank you mr. Chairman. With the limited reservations and a lot of cleaning. What aspect from Rail Passengers . The feedback has been very positive both the Customer Service Satisfaction Survey and with the regular focus groups and i can say anecdotally i read i ride the trains between new york and dc regularly and i talk with staff and customers and we have received very positive feedback. Is that available . So as i mentioned in my remarks we continue to investigate to investigate that environment. I believe they are and we communicate the steps we are taken with the different actions with those cleaning protocols that we enhance communications with customers. And thenen with service and the trains if you book a train today you could understand what that level is and then you want to book another with fewerpl passengers that is the enhancement we have provided to communicate. How many people will lose their jobs . Talk about 950 furloughs we announced they are by craft it a very could well be that they work in new york and reside in new jersey that we can provide that. So im just wondering what the impactnd will be. I want to get back to you with Accurate Information but i do understand the number of employees that will be furloughed who identify themselves as new jersey residents is a relatively smallmp number. Something less than 25. New jersey . Yes or yes sir. That the northeast corridor . Recently it is the northeast corridor . Yes sir but we will be happy to provide the Committee Staff with numbers by states so all members can have that information. Okay. Thank you very much. My question is for mr. Flynn. So can you meet that mandate for profitability . Obviously its not an ideal situation to take over an impossible business in the middle of aea pandemic. It makes it that much harder. Can you give the committee your perspective on your ideas how you can achieve that mandate and turn amtrak around to make it profitable . Thank you Ranking Member thats a great question. We are inn a pandemic we thought the shape of the recovery would look like av or you but thats not the t case. What we believe that there is reale, demand as we come out there is a combination of regaining prior customers as well as attracting new customers and we are engaged in some of that now. At the end of fiscal year 19 we had dramatically reduced losses and we are well on track so that tells me values the service we provide and that into 2020 the supplemental that we could use for Capital Investment and infrastructure i believe that muture is still out there for amtrak because we still dont know the shape of the recovery. But our vision is growth and expansion and then several metropolitan and corridors i was excited to lead amtrak i still hold the belief of what the future can be but now its out further into the future than we thought in earlyly marc. Thank you for your testimony. I yield back. The chairwoman recognizes mr. Payne for five minutes. Thank you mr. Chairman for izthe opportunity to welcome all the witnesses. The c. A. R. E. S. Act and important section providing payroll grants to airlines so airline employees would be kept on payroll and avoid furloughs. The return of that requirement is set to expire at the end of the month. Do you think any care act extension payroll grant provision should be extended to all witnesses . Mr. Flynn . Thank you. We did receive just over 1 billion for the c. A. R. E. S. Act and we have not furloughed anyth employees at this point in time. The furloughs we have now take affect in october. In our supplemental grant discussions we have identified announcing the supplemental funding. We definitely support spending the c. A. R. E. S. Act. And then to receive those longdistance frequencies. I would like to add to that our passengers rely on those frontlines particularly if you start looking at the number of disabled folks who need that extra hand we very much hate to see anything happen. Not only on the trains but in thee call centers if you look at the strange connection pattern it with those connections that becomes a complicated exercise and those on the other side of thein phone line to make that connection clear to a passenger so if you look at folks on the train or dealing with customers. Understanding that covid19 up and in the transportation industry. Now we know the plans and the 2000 employees 10 percent of the workforce. Those are the attempt to mitigate the revenue losses. We are here four. 9 billion in additional funding to deal with the revenue shortfall. That should not be the priority what would happen if congress failed to provide the funding that you are requesting . Thank you congressman. First, i fully agree with you that safety is our number one priority and safety among everything that we do regardless of the level of funding that affects the level of operations but never the level ofss safety. If we are not able to achieve supplemental final and with that reduction that means you also have to address on adjust for that in addition that Capital Expenditure and with the infrastructure and longterm Capital Projects such as bridges and tunnels in the service of reduction and employment we have very difficult choices. Thank you my time is up and i yield back. Everybody please remind on remember to mute while you are not speaking hopefully mr. Flynns connection will get back to the way it was. The chair will now recognize for five minutes. I will adjust my questions to mr. Flynn as well. Your written testimony says amtrak was on track to have revenues exceeding operating expenses fy 2020 for the first time t ever prior to the covid19 outbreak it would turn a profit before it devastated the ridership and that would be welcome news to taxpayers that provided amtrak with 100 billion of subsidies and i heard you talk to the Ranking Member about the same claim if i can use that term. Can you explain why the statefunded operation subsidies but does not count federal subsidies in the same manner . Im not familiar with this accounting standard where you leave certain things out or put them in. Also explained myto amtrak does not have depreciation cost and total expenses for the on audited report but includes them as expenses. And then to have the benefit of the doubt. And then to evaluate the viability. Ri can you hear me okay . And reporting on they gap basis. Referring to those numbers i have met two. And with that operating income. In the private sector and that is exactly right the largest difference between adjusted operatingg income is the exclusion for purposes of ebitda or adjusted income to provide investors with publicly traded companies with the accurate view of the core operating results of the company. They gap is theco bottom line and then catch up that they are doing and other infrastructure that hasnt been done for many years. Both are available on the amtrak website. I am not convinced the difference between state and federal subsidies. And a supplemental request has four. 4 billion and anticipated expenditures to operate from the total expenses of 14. 89 billion so can you explain why there is such a vast difference . That is a lot of money going back to the state question for just a second. And and keystone is a statesupported train they have that capacity ofd tickets and with that infrastructure. And ernst young gave us the accounting guidance to say that is where you properly account the revenue from the state because we are providing a physical service. We can provide more detail but without being difficult please repeat the question. Im out of time and i of the difference between the four. 9 billion request and the expense of 2019. There is a lot of money there im trying to figure out the difference. One is a total expense on a gap basis with hundreds of millions of dollars the four. 9 billiondollar request fy 21 addresses the revenue shortfall we are experiencing with the drop in ridership and then that includes operating expenses and then if we are directed to operate as seven days service it also includes money for the state based on what they told us they will need. But they still want us to continue to operate a higher level of service. And then to provide greater edetail. Thank you so much. This is an important hearing looking at the covid19 spandemic impact. From the Energy Industry and transportation systems. And as we have t heard about from Onboard Service workers beginning ind october. And unfortunately we see across theni country. So with the c. A. R. E. S. Act in with the revenues of 82 percent. And this was an important lifeline that amtrak still has yet to provide the detail how it will take the funds from the c. A. R. E. S. Act but we are concerned and then that is set. And with that c. A. R. E. S. Act funding completed. Thank you we are closely tracking every dollar that we spent under the c. A. R. E. S. Act. And the oig recently issued the interim update and with the recording and tracking of those expenditures. And we provide the Committee Staff a detailed accounting with the cares many we have obeen provided. And then reporting the on the ongoing basis. And then to address this question of funding. Also in your testimony you mention the method the Long Distance service whether they are booking trips i suggest Cutting Three days a week may unavoidably i demand because thats less convenient for passengers. And we know in other parts of the country that there is an impact onqu demand. So how that can on impacts the process. K we will continually evaluate the longdistance services that is our commitment and talking about the three areas we want to take a look at. First of all with the state of the pandemic has it subsided or we had a situation with the phase two there is a vaccine after vaccine. Because we believe that is the Inflection Point when the public will feel safer about traveling again. Its comparing the level love ridership against a low level capacity that already exist. And 21 against 19 and simply not comparable. And then already at reduced capacity. And with that lower levelhi of frequency and also our state of the company what level of funding we have received. They are some pretty common sense metrics on a continual basis and we got it from a pandemic and found the longdistance network. The other point that i will make and with the help in the cooperation. I have used up all my time. The chair will recognize mr. Rod the davis sorry i cannot get on the call earlier well, and great to see you one of our local mayors have been nominated, to your board of directors out of normal illinois. He is proud to be serving with you and i look forward to workingnd together. Passenger ship and ridership the numbers kept going down is time to address those s institutional issues for amtrak while the ridership are not at levels were it is impacting it. We have a agreement with the ally nine express with Ontime Service and there is always a conflict between the local railroad who owns those and Amtrak Service and it seems a constant game back and forth. And then to address the issue that has been driving these Ontime Service issues when it is higher so what are you padoing now to address those concerns . Good to see you again. You raised an excellent point. So the level of ontime performance has improved in those lower levels suggest to me that real improvement is available and achievable and why we were excited to see it in the legislation. We are specifically in illinois and discussion with canadian nationals on with the levels of service and operations. Certainly for all other oerations coming out of chicag chicago. Our belief is with covid19 to create challenges for thosee longdistance services, the number one issue we have is cooperation with the Class One Railroad to deliver a much h higher level of performance ive spoken with the ceo of canadian national. And the Community Roundtable with the representatives in champaign illinois and urbana illinois before covid head and we were assured by amtrak we are this close to the Technological Advancement with those two lines in particular which have a dismal ontime performance measures. We hope this technology with those issues and not the cooperation now then will go back to the same old same old. If i can be helpful to test this technology let me know if you have any other ideas and to let those known. We certainly understand in that situation that you describe. So we will not blame everything on covid but this is one situation i do believe it has had an impact and then to dodge that level of service everywhere. And then to get that technology installed. I i yelled back. Now we will move on. Thank you mr. Chairman or mr. Flynn i can only imagine what its like to take this leadership position when ridership is down 95 percent. To tell you how much we appreciate with that responsibility on your shoulders and to take the tough questions. So i do want to come back to the topic that the chairman raised with the 401 k contributions and i completely understand what you are coming from and why the amtrak employee would want to see those contributions and then we are more concerned about those if they are for load. So i wonder for example so if we believe you have to move in this direction why 7 percent why not to what percent or 3 percent . Why did amtrakk decide to move forward the date of restoration telling them january now october and the restoration and decision is balancing the equities involved. The vast majority of employees that we are talking about and those who areen making less than the agreement employees and to supervise and the benefits are not as rich. And with chairman the penske the 7 percent contribution is substantiallyi less. And under a defined benefit plan. And in part the retention it is tough to furlough anyone. Coming from a Railroad Family myself two years in a row my father was furloughed as an engineer. I remember the anxiety her family felt when that happened. So it was a very difficult decision. Can you convey after the hearings this will cost . You have to balance to lay people off these benefits which they deserve, that either way there is a cost if we knew how much better. Off the top of my head i dont have the number. I also understand amtrak for those management bonuses. The bonuses are wiped out and with those longterm incentive bonuses that plan is wiped out for the next three years. On a happier note the portal bridge from the gateway project the first grant announcement from the fda can you give us an announcement on that project . Yes incredibly important. We are working very closely with new Jersey Transit the fta has everything they need to pull into the Grant Agreement and we are pleased to see the dot commit 165 million to the project. We are hoping with the possible start of construction early 2021 a very important project. Thank you so much. Ha. Thank you mr. Chairman. We appreciate the witnesses to be here. According to the Cato Institute and then compare that to thely Aviation Industry of roughly one cent per mile is they are appropriate balance for amtrak . Thank you. I am not specifically aware of the numbers but i can address thel question. We are viewed to be and essential service. We are generating on the adjusted basis fiscal year 19 well into the 20 on the northeast corridor with that ourl of operation on state but the operational subsidy underpins the longdistance services so the vast majority to do that on a service line basis would be with the longdistance service. It seems to be a quiet discrepancy three times greater than what we see for the Aviation Industry. When amtrak a received 1 billion in congress we were expecting this would help the didoughs but then amtrak announce a will be cutting 3700 jobs while increasing the funding request by one. 5 billi. How do you reconcile cutting those jobs with a dramatic increase . But it really addressed our level of operations fiscal year 2020. And then to gauge the impact of the level of ridership, we anticipated 50 percent level of fy 21 compared to fy 19. And hasnt happened in the ridership will be 34 percent of fy 19. But that was made one. 5 billion that we would have some level of furloughs with the reduction in the longdistance service and 500 million of cost reductions and in part through other operating expenses to be reduce reduced. I have one minute left. And then to restore services to make a profit in the next few years. And then to hit some of the high points. And then to grow the company will have a challenging 2021. I dont know 2022 but it will be difficult i imagine. Ridership levels probably will not return until we have a vaccine widely distributed and the public assumes conditions have changed. We can restore services longdistance and the northeast corridor and increase the statesupported routes and before the covid pandemic and for those services after covid and then to we gain customers that we. Ave and attract to ourt business. My time is expired i appreciate you coming and i yelled back. You are recognized for five minutes. Thank you mr. Chair. Are you concerned with covid to furlough employees permanently . Thank you for the question. Yes i am. Yes i do believe they will use covid19 as the excuse. In the brief we just saw they are looking for concessions. Can you hear me congresswoman. Yes, we do. We keep labor informed of reallyly everything. Know your budget reports. Your budget reports. With your expenses. What you are expending on the cares acts or covid. So guess. All of our enhanced reports are publicly available on our website. No, no, directly to them . Not the public. I am not specifically aware that we formally send them a report every month. But we have indeed shared our results with labor. And we speak with them, many labor leaders on a regular basis. Two are right, you have any comments . Ms. Griffin . Is congresswoman we have never received any financial updates. This may be on the long side but we never received it. Have never received any. It would behoove thehe agency to share with them so they know where the money is spending if you are doing the 401k, only to certain work people, what justifies you being able to do that . And the next question i have, i am from california. On his estate route are in california, has the ridership these routes, not on the northeastco quarter then diminished as that on the northeast corridor . What is being done to assist statesupported routes of the workers on these rasping furlough differently by the workers on other areas of amtrak operations . Ea so, state supported california, the three jpas are very important operations for amtrak. An important for the state congresswoman. Two i know that. Wer are operating a level of Train Service based on what the three jpas instruct us to operates. So they make the decision of how many trains we should operate. During covid and post covid. So we respond to them. They would make i would say the business decision on how many trains operate. And our state partners, are certainly working with us. But also insisting that we keep our costs low. And in part, that gets to what level Employment Base will be have to support services . It is something we hear about on the three jpas regularly. It is part of her ongoing discussion with them as we plan for the 2021 levels of service, maam. Right i would suggest that you communicate with all of your employees. An address the disparaging. They need to see why you do what you do print i support amtrak, no doubt they do a great job. And i support the employees. But i wish the organization with you being new on board you might consider connecting with them, to allow them to see why youre doing the things you are doing and not have to come up before for us and explain it to congress. I think that the waiver of by america, we want to keep things in america. We want to do more in america. So i propose there might be some need for it. We need to look at how important that is to the organization. Mr. Terre yields back. The chair will now recognize mr. Smucker for five minutes. Ze civic thank you mr. Chair. I appreciate you holding this hearing. I would address comments to mr. Flynn as well as some questions as well. But first, recognize i know you have taken leadership of this organization during a particularly challenging time. The coronavirus has certainly taken a tremendous toll on families, businesses and workers all across the country. And i note can you turn your camera on . And doesnt appear to be capturing you. I hit that what i needed myself sorry about that i did not know it was not on. So as i was saying, as individuals have shifted their work habits and travel, anotherow has been a tremendous toll on amtrak. Its got to be a tough time to take on the leadership of an organization like this. It would to congratulate you and understand that difficult time, rail is important to our transportation infrastructure. And i support Rail Passenger service as well. It is important in my community. Particularly amtrak. The keystone line runs right through the represents. Its one of the busiest pennsylvania, right behind 30th street station. So it is important. You talked a little bit about the virus impact on amtrak. But i specifically want to sort of understand what has happened on the keystone line and have some specific questions. You said ridership was down 97 believe you said overall. What have you seen in the keystone line . Of 97 was the immediate impact, mr. Congressman, and march, aprilin and may. Our ridership has recovered about 20 . So we are down at 80 . Was that similarly on the keystone line . The keystone line was a firstly statesupported lines a shutdown. Early in the pandemic, the direction, the keystone line was shut down for a period of time. And i think important because of the covid outbreak or incidence of covid were within several of these set operations himself but we are happy to have the keystone line has been reinstated. We are operating the keystone line today as we speak. I dont off the top of my head know the specific level of ridership. That certain something we can get back to you with. [inaudible] it would be similar. All of the Commuter Services, several of the Commuter Services were statesupported lines that operate more like a commuter service. It had a bit higher level of ridership is people returning to work. More than people are taking leisure travel. I just dont have the number off the top of my head. Civic junior how the revenue compares your to date compared to this time . I do not have that off the top of my head congressman smucker purdah have to get f ck to paris if you could get that that would be great. He mentions the statesupported line. How does the keystone line compared to the investment of the commonwealth . Sabina another area i would have to get back to you on part i cant recall that never prayed i will be glad to get that later. You know what percentage of the am amtrak stations are ada compliant . I do not. I do know we are making substantial investments in ada compliance. Certainly the keystone line is part of that. We have a requirement. Arms are running out of time. Do know what percentage of those upgrade projects were paid for by amtrak as compared to by the state . By the commonwealth . Most of it was paid by pennsylvania surfer my understanding. Drawl the amtrak revenues outside of ticket sales including fees utilized from other rail line get reinvested back into the keystone line . Keystone revenue with keystone line . The keystone line is part of the entire northeast corridor. There is a very comprehensive set of rules and legislation under two tollfree. Im going to stop you. Im at the end of my time here. Might be able to guess that getting at thehe committees markup earlier this year to transfer the keystone line to pennsylvania next ago in the house returns the session i plan to offer that amendment as a bill. You know, i would just like to ask you, dont you, think at this time the amtrak is losing money on the keystone line, particularly with the challenges now. You think it be put in better financial standing . I dont serve. Think making a shortterm decision over making the longterm level of operations i dont think it would be a good decision. I would hope that, i know rail service is important. Think at this time, look forward to some of those answers coming forward. Sherrill recognize mr. Cohen for five minutes. To have mr. Cohen. [inaudible] the chair will now recognize mr. Garcia. Thank you, mr. Chairman. Thank you for convening this timely hearing part like my colleagues im deeply concerned about the changes that we are hearing about at amtrak. Concerned but not ae surprise given the of this pandemic. I doni not envy the decisions are having to make at this time. But no one could have predicted the h financial onslaught the transportation sector would suffer when the pandemic first struck. Since march, we have quickly seen ridership drop, precipitously. In a financial disaster covid has been for so many sectors. Almost 1300 amtrak workers live and work every day but the vast majority of workers at amtrak comic train operators, engineer and the like are unionty workers. They make decent livable wages, thanks to the good paying union jobs. Forir amtrak employees getting the pink slip, the decision is crippling. Frankly, my constituents are feeling the pain. Not only have they had the economy moving but theyve done so at the risk of their own health and that of their families as well. Still, we are letting them down ando you are letting them go. In our preliminary conversations with representatives from amtrak in chicago, i was informed that nearly 200 and the chicagoland area will either be furloughed or severed entirely. Mr. Flynn, can you confirm the number of furloughed versus fired employees we can expect from this proposed action at amtrak both nationally and in chicago or illinois . Think every much for your question congressman garcia. Furlow would apply to any Union Represented employee. They are not severed from the company. Te they have rights of return to service on a seniority basis. No seniority recall rights or recall rights are indefinite. The only time they be severed is that thein Union Employee did not accept a return to service, when so advised. Until they retain those rights. A management employee, however, does not have a right of recall. So Management Employees are severed when furloughed. I think we are severing about 100 people. Again a very difficult decision to do. Management employees have the right to reapply or apply to be rehired when year or more after. I dont have the specific chicago numbers, but would be happy to provide that. If you would. And then, will these families receive any severance or extended benefits . What about healthcare . That is a very important question. You sir. We have gone beyond our contract requirements with their Union Represented employees. And they will have full healthcare coverage at no cost to the employee or his or her family through september 30 of 2021. For a management employee, we have a reduced cobra for them, for a period of months after their severance. And can you briefly, changing gears, shed light on the typeny of service we can expect in chicago . I understand several interstate routes through detroit and wisconsin will be heavily impacted. Spin at arbor Long Distance routes that come from chicago go to a three day a week service. Those that are not already ther there. Hell go to a three Day Week Service or a sevenday part of the couple are already at three day a week. Then the statesupported routes be dependent on what the states and tell us they want us to operate. We do not control that. I wanted to ask you, more orindepth about the thousands of people in indiana, wisconsin chicago that depend on amtrak days to get to work or family. And the third act, how would that additional funding be utilized the on the 4. 9 billion you have requested . So if we were to get the 10 billion of funding that they have spoken to about 4. 9 billion would be used, as we have already described the incremental supplemental expense. And the other 5 billion would be used both across our company, some in the northeast corridor. But the majority are greater than Half International network. And we would use it to invest in fleets. Our bridge and tunnels work as well as in workforce training. And working with our labor unions to develop internships and job training opportunities. Thank you sir. Mr. Chairman i yield back, thank you for your indulgence. Thank you mr. Garcia. The chair will now recognize mr. Fitzpatrickze for five minutes. E thank you, mr. Chairman for yielding, for holding the hearing today. Thanks to all on the panel for being here with us today. My question is for the president. Im wondering if you could walk us through, explaining to community what you done to assist amtrak with reducing the overall cost of doing business . Thank you, mr. Chairman for the question. First, mr. Chairman, i want to thank you for yourr ongoing support for the amtrak workforc workforce. By leading aam bipartisan letter along with congressman for supporting emergency relief and for him tracking protections for our workers. Youve also shown time and again that you support and care about amtrak workers. Even standing with us at our rally in a freezing cold february in philadelphia. To answer your question, what the members have been doing, most recently, our workers have received a 10 pay cut. By putting them actual list of guaranteed money reducing that ist, continuing. Many employees took voluntary leave without pay to helpas amtra amtrak. They lost a weeks pay. Month. Weve also said to amtrak, what can we do to try to make other sites agreements, which unfortunately we haveo not had. We go back a little further, i negotiated the last round of contractss bargaining. I was the lead spokesperson for coalition. We lead with amtrak. One was relief under healthcare. Not shortterm relief, longterm relief ono healthcare. We buckled down, rolled up our sleeves, and we attacked it. By making a whole new Healthcare Plan for the first five years of it employees employment. Or they can go into the higher level which according to our numbers, generated 4 million over those five years. Of savings, rolling it out for the future, ten years would generate 17 million. And over 20 years, 72 million. Which amtrak needs for stability in their healthcare. We also increased our membership costst share. That wouldve generated 20 million and amtrak for employees. Plus on wages and needed relief early on. And we gave them that relief by adding a six month zero in the front of the contract. And basically taking one point to five for 18 months for the first two years of that contrac contract. Industrystandard, everyone is getting18 a 2. 5. Get we took one point to live from the back of the deal to help amtrak for the future, future employment for our numbers. Ive long history amtrak, sitting down, rolling up her sleeves and making things work. Weve added parttime agreements orw call centers in our ticket windows. Anything wee can do to keep our people moving. And this is just a small step in the right direction we have not seen time and timell again to make things work. That is why its a little disheartening to see her front line people who, when you talk about heroes, these guys are the heroes. These brothers and sisters are your frontline people. City clerks, ushers are cleaning the stations common doing spot cleanings to keep everyone safe. And now risking their lives and families have to go out and losed their job and further respond to the congressmans question on it sorry guys, the managers they have rights with the unions they come back. They dont hit the streets and most managers holds rights. So that has to be taken into consideration. The tcu has always stepped up. We have many times. I hope that answers your question. Yes thank you. Enter chairman and all my colleagues on the committee, think its important that we remember to recognize these frontline workers. We hear thens term used a lot. These people should be included in that definition. As you just heard, they have significant skin in the game. And they have made tremendous sacrifices. We talk about amtrak would gotta start the conversation with the men and women who are the front lines. So thank you for your service. Mr. Chairman i yield back. The chair will now recognize mr. Norton for five minutes. Ms. Norton are you there . Im sorry. You are recognized for five minutes. Okay im sorry, i must have been muted. I particularly appreciate this hearing. Amtrak is on the Northeast Corner door and Washington Union station is the second busiest station nationwide. Of course i represent the district. The question is first for mr. Flynn. Mr. Flynn i i know the continuing competing pressures you have. Youve got a decrease in ridership. Drop in revenue. Youve got new safety protocols. And yet i know Capital Improvements continuing. For example the bridge along others. Like you to answer how you are able to continue Capital Improvements in the middle of this economic and health crisis, that am track faces . Thank you ms. Norton. The Capital Improvements that we continue to pursue, or continue to is being pursued for long time. As you know. And pulled for the company and our writers. The revenue come from . The revenue for the improvements come from congress. Its monies that are allocated to us, working jointly with the department of transportation the federal railway administration. Has there been any costs in the revenue. [inaudible] know, there have not been any cuts. Theen Capital Funding is fairly specific as what is intended to do. And these are investments and hundred year old infrastructure. Im not sure people can hear me. I hear. I understand the importance of what youre trying to reconcile. With congress and the heroes act which we need so badly. And your ability to continue to fund Capital Improvements across the country it looks like. But iit take it those funds were already appropriated . Or the Capital Improvements . Yes, maam those funds were appropriated. And certainly additional consideration for Capital Expenditures and cares as well. Civic okay alright. I am intrigued upon learning newer partnership i will call it with rb, which is the maker of lysol. There is a difference in the transport workers that were testified about lack of coach cleaners. I am wondering about this new partnership to strengthenn disinfectant protocols for trains and stations and i am interested in it because among the first, trying this of the first with Washington Union station and the pacific i line. And is one of the busiest in the northeast core door. So could you give us some regular detail on these enhanced protocols that you will be using on amtrak in this new partnership with the maker of lysol . Yes, maam. So lysol, the product lysol is what a very few products that the food and Drug Administration has determined to be effective against covid19 an effective against other corona viruses of different types. Are doing, as we are constantly researching, seeking to understand what more can we do to mitigate and or essentially eliminate the potential for our customers and our employees to contract covid while in the station or on a train. And so in working out this agreement with lysol, we are providing cuts, the fdas determined for the products where theyre also with us in providing advice to us, making protocols that we employ. In fact before they would sign this agreement with this he did a very comprehensive review of what we are doing. When they are cooperating with lysol with their cobranding with us. They were not going to co brand with an entity they did not feel had the right level of protocols and action in place. So we are testing it first in the stations. As you pointed out now, we believe those products could be on the train. That is the next step with the company for their products. That is reassuring. Thank you very much. My time has expired. Art thank you the chair will now recognize for five minutes. Thank you chairman. It is great to have mr. Flynn here today. Mr. Flynn thank you for being a pretty want to thank amtrak for their service of these trying times. I appreciate you being here. Mr. Flynn out like to follow up on a point my congressman made earlier on depreciation part on november 8, 2019. Amtrak announces lowest operating loss of 20. 9 million for fiscal year 2019. In that same statement, amtrak went on to project a profit for 2020. Which of ba first and amtraks nearly 50 year history. If depreciation was included in this financial reporting, what would amtraks loss had been and 2019 . And what with the projection had been for fiscal year 2020 . If we were to add back the depreciation. It would be about 792, to 800 sates 750 to 800 million. So in adjusted operating income baseness, i believe that fy 19 was a negative 29 million or near breakeven. Adaptive add back the seven or 50 million of depreciation. There may be some other expenses in there. But, that would get you to about 800 milliondollar loss on a gap basis. The same level of depreciation going into fy 20. Day dont have the exact number. It would increase somewhat. But not of a magnitude. Okay good enough thank you. Next question would be assuming a level Playing Field including workforce f protection would you oppose opening Certain National network routes for competitive bid . If that meant driving down costs and improving service . Well, i certainly its not a question i have considered paradise certainly appreciate you asking that congressman. But as a First Impression to me, no i dont believe the operator open up our longdistance routes for competitive bids at this point in time. We have a hard enough time just getting on the network withti our Host Railroads to operate the services that we provide. More operators create more complexity among other things. And i would imagine it can be highly disruptive to us. And i would imagine it could be highly disruptive to the Class One Railroad. And i think that would also with the situation there i think would certainly jeopardize opportunities for current employees. Thank you. Mr. Chairman i cant see the clock, how is my time . You have two minutes. Think assert. Mr. Flynn my last question them. I understand you work for a Class One Railroad. And i know you are familiar with the importance of Freight Railroads to our economy. How do you plan to work with all Freight Railroads to strengthen the relationship between those railroads and m trackk to improve time performance . Thank you separate didnt have the opportunity to work for cx f for several years a while ago. I do believe i have a class lre Freight Railroad perspective. I think we can certainly coexist. By think we can do more than coexist. I believe we can both prosper. Freight railroads make an important contribution to our economy broadly. In sodas amtrak. So i think if we could have standards and metrics in place, clarify the ground rules there, right of private action, we can sit down the class w one railroads and absolutely work out a situation to work to an operating profile that allows for high quality ontime operations for both our passenger operation enter Host Railroad operator pitcher thank you very much for taking the time for being here. Please pass along our thanks to amtrak employees for the frontline workers and being out there, god bless them and stay safe and healthy. Mr. Chairman i yield back the rest of my remaining time. Thank you. The chair will now recognize strohl loiselle for five minutes. I thank you mr. Chair. Thank you to all to the Ranking Member and all the panelists on this very interesting issue talking to amtrak in the future of amtrak. I would like to focus in on amtraks response to covid19 specifically. My first question is to miss griffin. Ms. Griffin, newer written testimony, you provided a concerning account of your experience in july were you were in contact with a covid 19 positivere colleague. We took steps to notify your supervisors, to initiate protocol that would remove you from further t service to avoid further spreading the virus. However, you were not immediately removed from service. And we only removed after further intervention from supervisors. Sumost concerning is you were told by amtrak to return to service after only ten days. And were never tested for covid before returning to work. What you did not display any symptoms, we know that asymptomatic individuals spread the virus, just as much. In fact a study has just recently been published at last months journal of theas american medical associations internal medicine, found it asymptomatic carry as much of the virus as those who were exhibiting symptoms. Since your experience in july, do you know if amtrak has instituted a different process to remove possibly infected individuals from work . And to ensure they are covid free beforee returning to work . Thank you for your question. As far as i know, no. Its the same procedures. Actually ivan quarantine twice through amtrak with possible exposure. It is been the samer protocol. Thank you. Mr. Flynn, what went wrong. [inaudible] will i would play very closewe attention to ms. Griffins testimony as she was describing the conditions and circumstances to the committee. And im going to ensure that we look into those details very closely. We require that our employees quarantine after we confirm exposures. Exposures to a nether employee. There onlo the road be asked them to isolate on the return trip. We also require a 14 day period of time. I cant comment again specifically ms. Griffins circumstances. I believe she might have just said the first time that she quarantine it was for 14 days . Again i want to look into the details of that. I dont know if ten days was a lapse total of 14 days since the exposure . I dont know. It would not be appropriate for me to it presuppose any of that. But as i said tio knight confirmed to miss griffin, who was on the panel here with me, i will certainly look into those details. We do require our employees to quarantine. We do pay protect our employees when they are on quarantine. Forar, we have hadlo example 3921 employees that we have pay protected not only because they were potentially exposed or exposed, but if they believe they have some exposure or they had some had some symptoms of covid. Be at 1845 employees test for covid, 482 tested positive. I which only seven are current. And we are now providing testing on demand, which is over and above cdc guidelines in our perspective thank you for describe the processes and amtrak as a place to ensure potentially affected employees are not on duty or entrance or in the stations. Mike what next question is, this amtrak ebony processes in place to Contact Trace covid in infected passengers . What happens if a passenger test posited a day or two after their train trip . Do employees who worked on that t train, do they find out about that . If you can describe that process also. Yes we do have contact racing in place. Where we can, with our passengers and what i mean by where we can, is we dont always know where a passenger sits on the train. We did actually have an early covid case passenger as early as march. With the to chicago and st. Louis. We were able to contact virtually everyone on the train. There were not a lot of writers on that train. Not just everyone in the car. Work with the Public Health department to continue to do o so. Thank youth ms. Griffin. Thank you for their testament. Very concerned about the processes that are in place. Whether in example of miss griffin for things did not work out as well as she would have liked. If they have improved andw with that chair i yield back. The chair will now and recognize mr. Carson for five minutes. Thank you mr. Chair. My own . Okay. Select we can hear but your camera is not on. Okay there you go. Okay. I do long online. My question for mr. Flynn regarding beech grove. Ive been very concerned about the furloughs. That you are considering. I am especially concerned about the possible impact on maintenance facilities. Can you tell me whether or not you plan to cut positions at beech grove. I would also appreciate in writing, any plans you have two change the work force level at the beech grove facility. We are not furloughing any employees that bit a champ beechre grove. In fact the number of the beech grove employeesp did take the voluntary separation and retired for its own factor actually hiring said employees and beech grove to backfill the positions. As you know, beach grove require someri substantial Capital Investments of the next several years. But as we develop future plans about beech grove plans of impact beech grove would be very happy to advise your office of what those plans would be. Thank you that will be a big help. Thank you veryb much. Listen to your testimony about the damage being done at the Passenger Rail service in the midwest by reducing Daily Service on longdistance routes. Indianapolis was previously served. I benefited from this. Can you elaborate on what happens toef midwestern cities when Daily Services are cut . Do you think congress should mandate Daily Service . I apologize congressman was a question for me sir . For you mr. Muller and anybody else who wants to jump in about congressionally mandated Daily Service, chimed in. So guess her. Our positionnd is yes they should be at a minimum daily. And the reason for that is because of the Multiplier Effect of the servicers have ethe community. The amtrak is required by congress to make a profit. Not. It is required to minimize subsidies. And we have the conversation about profit, that ignores the benefits the community receives. We talked about that. The midwest is a perfect example of that. When we looked at the effect of the longdistance route, 12 of the 15 longdistance routes will be cut. T. Those routes together contribute about 4. 7, 4. 8 billion to thes economy. That is the prophet. The prophet is going to the communities8 being served. Whether you looking at st. Louis, indianapolis, or anywhere, these services are provided outside benefit in weterms of tourism, in terms of visitor spending common terms of taking vehicles off the road. All those impacts are measurabl measurable, quantifiable, and amtrak itself used to talk about 7. 4 billion of value to the economy. That was created. We think that number is actually a lowball paired we think its actually little higher thanat tha that. When you cut the Daily Service down to three times a week, you dont just cut four days worth of ridership. The ridership declines more than that because of the diminished utility. And because of the diminished connections. Chicago is a tremendous connection point. As you know that is going to be particularly difficult situation on the midwest. A lot of those connections becauser they are difficult to make. This trip simply wont take place. 39million of revenue, of connecting revenue flows from chicago alone. And a lot of these trips are going to originate in chicago inflicted midwest. In the strips will not take place because the network does not have utility required to make those trips worthwhile. So those are people who will not be getting off in the smaller towns. Will not be spending their money in those towns paired will not be eating in the restrooms, will not be supporting the local economy. That is a big blow. It is already a big blow it its only going to get worse. Thank you both. Determine a yield back. Thank you mr. Carson. The chair will now recognize mr. Lynch for five minutes. Hello mr. Chairman, can you hear me . We can hear you we can see it. A right thats good. Two for two. First i went to thank you, chairman lipinski for keeping your focus on this. This is a very important issue. And i appreciate the witnesses trying to help. Mr. Flynn, so going back to the cares act, we pushed through a billion dollars, hoping that would help recapitalize amtrak so that you could avoid furloughs. Then we put through 10 billion in addition to that. On the transportation appropriation bill. And then under hr two, we actually, i thought were very generous to amtrak by supporting 30 billion for amtrak over the next five years. And to be honest with you, i thought we were very generous spirit and just so you know, during the debate of hr two, i had an amendment. The amendment would have prohibited any furloughs, layoffs or reductions in force during the term of this pandemi pandemic. And yet, the feeling between amtrak and members of the committee and staff, was that with this generous funding of amtrak, that this would be unnecessary. And i should withdraw my amendment. So in good faith, good faith i did. I withdrew the amendment that would have prohibited what youre doing right now. So i am not happy about that. I just want to tell you, there are consequences to your decision. I mean in good faith, i supported all of that funding ford amtrak. And as a matter of fact, while at my district is at one end of the northeast corridor, that provides a profit for amtrak, i am entirely comfortable. And i fully support amtrak using the prophet they would make in the northeast core door to help our midwestern, southern states. Some of those red states. Those rural areas that would be without service. So i support that. I dont think we should count out those lines of service, those lines that dont necessarily benefit my district. But i think benefit the country. I hope you take very seriously the credibility that you will lose by engaging in these furloughsdi. In the reputational damage that comes to amtrak management because of this decision. You know these 2000 line workers are very important tobe us. They areu the heart and soul of amtrak and i appreciate that the management personnel are important as well. But we are going through a rough patch right now. And i think this is, this decision, youre not keeping faith with our line workers by amtrak. You are not keeping faith with the people who drive those trains and maintain those trains every single day. And i have some deep misgivings about my own misgivings of pulling that amendment. Im asking you to rethink that. And, we are all in this together. I dont think that your decision to furlough these 2000 employees is going to save the day, quite honestly, because counting them out is going to reduce service. Cutting them out is going to continue to spiral that bottom line deficit. So you are going to lose the faith that members of Congress Like me, who were behind you and supportive of you, because of this decision. And so, if you have any other alternatives other than what you are suggesting right now with this furlough decision . Thank you congressman lynch. It is a very, very difficult decisions. And once we all feel very personally. Asar you pointed out, hr two were to become law it would be Game Changing for amtrak. On many, many levels butut including the ability of maintaining everyone and employed pretty in retaining the Service Breach of the economic recovery is proposed under solid legislation, that would be some multiple Game Changing. Im not sure what the right additive is. But we dont have that funding certainty yet. That is why 4. 9 million im sorry billion dollars supplemental that we presented to the committee and had discussions with staff and members, it is about retaining employees. Who would otherwise be furloughed or may be furloughed then recalled. And a Long Distance service. As i had mentioned and a response to another member of committee, we had quite a a bit of input from a wide range of sickos including the senate and the administration that said you need to, in your request look at those areas that were given the very, very low levels of ridership you are experiencing, you need to engage and you need to take some selfhelp and reducing costs. Those are with the balance and they heard everything that you said parade which is why in my remarks here today i was pointing out, levels of funding given a 34 level of ridership and 21 is compared to 19. That we would require. Well, i think we have got to hang together. I just do not see the support that i think we owe to our line workers. I just dont see it in these 2000 furlough. I would encourage you to revisit that decision. The other peace of the question i have the vendor bidding on contracts that may result in jobs being exported overseas. Lost in the United States theni exported overseas. You have anything to say about that . In terms of like did receive a waiver to purchase some very specific track laying equipment from overseas and we did that after the fra. Its absolutely necessary not available. Your referring to the recent rfp for it work, that certainly been brought to my attention for it i was unaware, chairman defazio and chairman graves or chairman defazio specifically. We have adjusted the rfp and naken out the ability of the responder of the successful responder to outsource that id programming work. With some other rfps and we also made those changes asra well. A right under the circumstances you could see how youd be under severe criticism for doing that. But i appreciate that you have visited that. Im glad you werent listening to chairman defazio. In happy lease the it portion of that has been retained. Mr. Chairman, im going to yield backward and want to thank the witnesses for their help with the committee at this hearing. Thank you, youll back. Sabina art thank you mr. Lynch. Are there any members who have not had any chance to ask any questions . Right hearing none, i went to thank the witnesses for testimony. Y. I think mr. Lynchs comments there at the end were a very good way to conclude. We need to be supportive of the workers at amtrak. Im sorry they didnt have more of an opportunity here to field questions. Read think people understand that mr. Flynn is, you know, he warned the driver seat to whats happening. But amtrak needs the support and they help from congress. Im very happy to hear it at the end, i was not aware. I sent that letter along with chairman defazio about the outsourcing of the it job. Im very glad to hear that has been changed. That option has beenso changed. That is good news2 hear from you mr. Flynn. What we are going to have to continue to talk about the need to make sure amtrak workers are taken care of. And also amtrak passengers receive the service they deserve. When the pandemic is over our return to the service which is questionable if we have cuts to service in the meantime. But i want to thank all the witnesses again for your testimony. Consent of the record of todays hearing be open until such time as the witnesses have provided answers any questions. You may submit to them in writing. I also ask unanimous consent the record remain open for 15 days for any additional comments submitted by congress or witnesses included in the record of todays without objection so ordered. And with that the subcommittee stands adjourned. Thank you. Book tv on cspan2, has top nonfiction books and authors every weekend coming up this weekend, saturday at 8 40 p. M. 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He will discuss the diverse ecological jewel impacts across the globe and how it went far beyond physical changes to european battlefields. Shifts in Agricultural Production and the displacement of wildlife and humans. On sunday, at 3 00 p. M. Eastern, hear about yales first female students after the university opened its doors to women in 1969 for the first time in its 268 year history with and Gardner Perkins author of guilt needs women. Then at 6 00 p. M. On american artifacts, explore the newly completed with Dwight D Eisenhower memorial located near the u. S. Capitol and set for dedication on september 17. At 7 00 p. M. Watch the 1960 president ial debate between john f. Kennedy and richard nixon. Watch American History tv this weekend on cspan three. You are watching cspan2, your unfiltered view of government created by American Cable Company as a Public Service and brought to you today by your television provider. Select and now federal and state officials take partner discussion on election voting machine security with election day less than two months away. Ill buy the billington cybersecurity annual summit, this is about 35 minutes. Well good morning. And welcome to this most Important Panel called election cybersecurity safeguards during the pandemic. It is a great pleasure to introduce to you, this worldclass moderator and panel. Let me first introduce our mo