Originally Posted by AlanB
This bill could force Amtrak California and the Downeaster to raise the prices of their commuter passes, which in most cases fall below the 50% threshold. Again, since Amtrak is incurring no losses on those runs, the states should have some input into the fares being charged.
From the bill:
...That none of the funds provided in this Act may be used after March 1, 2006, to support any route on which Amtrak offers a discounted fare of more than 50 percent off the normal, peak fare.
The limitation only applies to routes operating with federal subsidy. Amtrak is made whole on the Downeaster and the California Capitol Corridor services by the states. These routes do not receive federal support and are not subject to the 50% maximum discount requirement. If they wanted to, the states could make those trains free and simply pay Amtrak to run them.
It is interesting to note that Amtrak is in the process of raising the NEC monthly fares to a 50% discount (from 70% off). In its press release announcing the new higher commuter fares, Amtrak stated that the 50% discount will remain the "largest offered to commuters by any railroad." Opps. I guess they did not check their own fares in New England and California before making that statement.