House Transportation and Infrastructure Committee Chairman John Mica (R-FL) and Rail Subcommittee Chairman Bill Shuster (R-PA) announced at a Congressional hearing that they are preparing legislation they believe will speed up development of high-speed rail and reduce high taxpayer subsidization of the project. Their proposal would transfer development of the nation's most congested corridor from Amtrak to private sector competition.

"We plan introduce legislation to separate the Northeast Corridor from Amtrak, transfer it to a separate entity and begin a competitive bidding process that would allow for a public-private partnership to design, build, operate, maintain and finance high-speed service. Our plan would do so in a dramatically shorter time, in closer to 10 rather than 30 years, and at a fraction of the $117 billion cost proposed by Amtrak, while creating new jobs," Mica said.

"We've tried it Amtrak's way without success for nearly 40 years and it's time to go down a new path and inject private sector competition," Shuster said. "It is time to deregulate America's passenger rail system and the Northeast Corridor presents the best place to start with private investment and market-based ideas."

The Mica and Shuster proposal is being developed according to the following principles:

Ending the Amtrak monopoly

• Separates the NEC from Amtrak, spinning it off as a separate business unit

• Transfers the title for the NEC to a separate entity

Bringing competition and the private sector to the table

• Requires a competitive bidding process for the NEC

• Establishes performance standards for true high-speed rail with a requirement for service in less than two hours between Washington, D.C. and New York City

• Reduces and potentially eliminates the need for federal subsidies

The time is now

• Moves America forward in less than half the time as Amtrak's proposal with firm deadlines for action

Creating jobs and worker protections

• Ensures labor protections are kept in place and provides for hiring preference to any potentially displaced Amtrak employees