AUTHORIZING APPROPRIATIONS FOR THE ADMINISTRATIVE EXPENSES OF THE UNITED STATES RAILWAY
APRIL 27 (legislative day, APRIL 24), 1978.-Ordered to be printed
Mr. CANNON, from the Committee on Commerce, Science, and Transportation, submitted the following
The Committee on Commerce, Science, and Transportation, to which was referred the bill (S. 2508) to amend the Regional Rail Reorganization Act of 1973 to authorize additional appropriations for the United States Railway Association having considered the same, reports favorably thereon with an amendment in the nature of a substitute and recommends that the bill as amended do pass.
PURPOSES OF THE LEGISLATION
This bill authorizes $27,200,000 to the U.S. Railway Association (USRA) for administrative expenses for fiscal year 1979, as requested by USRA and in the President's budget.
The USRA was created under title II of the Regional Rail Reorganization Act of 1973. Planning and financing responsibilities that were given the association were designed to permit it to accomplish the restructuring of the Penn Central and six other bankrupt railroads in the Northeast and Midwest. The restructured system, which went through a preliminary system plan and later a final system plan, is now being operated by the Consolidated Rail Corporation; Con Rail.
The USRA has responsibility for providing funds to Con Rail so that it can rehabilitate and improve the facilities transferred to it by the estates of the bankrupt railroads and must monitor the need for and use of these funds. Appropriations of $2.026 billion have been made for this purpose. The second major responsibility of the Association is to represent the Government in the litigation that has been