Amtrak Will Increase Fares

Amtrak announced on Tuesday that it will increase its fares in response to rising fuel prices. Most ticket prices will rise by an average of three to four dollars. Amtrak described the fare increases as a crucial part of its 2006 fiscal budget to cover cost increases and expected cost increases. The fare increases come at a time when the Senate has proposed a new bill that would cut Amtrak’s federal subsidies by as much as 40%. Amtrak received a federal subsidy of $1.2 billion this year and is expected to receive a federal subsidy of $1.4 billion next year. However, if the bill passes, that subsidy will be reduced significantly.