Michigan appropriations subcommittee hears MDOT, Amtrak and labor on passenger rail funding, reliability and equipment needs

The Appropriations Subcommittee on the State and Local Transportation heard a comprehensive briefing on Michigan passenger rail on the committee’s most recent meeting. MDOT, Amtrak and labor representatives outlined the system’s size, how state and federal dollars are used, and priorities for improving reliability and expanding service.

Peter Anister, director of the Office of Rail at the Michigan Department of Transportation, told the panel Michigan has roughly 3,600 miles of rail corridor, about 81% of which is privately owned, and described state ownership of key segments including the Michigan Line. "We have three routes here in Michigan — the Wolverine, the Blue Water and the Pere Marquette — and Amtrak provides that passenger service," Anister said. He described the operating relationship: Amtrak bills the state monthly under an operating agreement and Michigan pays the difference between ticket revenue and the Amtrak-calculated operating cost.

Anister cited the federal Passenger Rail Investment and Improvement Act (PREA) Section 209 as governing state-supported routes and said a third-party process establishes standardized rates used to forecast state costs. He described two payment approaches states may use — a fixed forecast-based method or paying actuals month-to-month — and said Michigan chose a fixed method in recent years for budget stability.

On costs, Anister said the state’s net contribution for operations has generally been about $20–25 million per year to cover the gap between fares and operating expenses; capital projects such as bridge or track replacements are budgeted separately. He gave FY26 figures for MDOT-owned infrastructure work, saying the department anticipates about $12.6 million for track maintenance and roughly $14.5 million for capital improvements, and said MDOT currently manages about $75 million in active federal grants (approximately $40 million federal funding) for safety and infrastructure projects.

Amtrak’s Martin Sandoval, senior manager for government affairs in the Midwest, said the national carrier is seeing record demand and described Michigan trends: he reported roughly 790,000 passengers statewide across the three services and stated ticket revenue growth to about $39 million. "Revenue covered 83% of those operating costs" in Sandoval’s presentation, and he said the Pere Marquette covered a higher share of its operating expenses. Sandoval also noted Michigan’s modernized fleet and Amtrak facilities such as maintenance bases in Pontiac and track maintenance in Niles and Jackson.

Labor representatives who operate the trains urged investment focused on equipment and staffing. "We have a modern fleet, but the fleet is maxed out," said Nate Hatton, an Amtrak conductor and local SMART TD chairman, adding that limited downtime for maintenance makes reliability fragile. Eric Stanger, Michigan safety and legislative director for SMART TD, said sustained, predictable state funding helps secure federal matching dollars and competitive discretionary grants. Stanger cited public interest in new corridors, referencing a Groundwork north–south study that drew high initial survey participation.

Committee members pressed presenters for clearer fiscal pictures. A member noted the slides showed ticket revenue only and asked to see a combined chart of total revenue (fares, federal grants and state appropriations) for capital and operating, a request Anister agreed would be useful. Members also questioned on-time performance differences; Anister said the Pere Marquette benefits from being a shorter route and from scheduling advantages that reduce conflicts with freight traffic.

The union witnesses also described accountability steps taken after the state raised safety concerns: according to the union testimony, state attention to onboard-safety funding led to the establishment of an Amtrak police office in Battle Creek and assignment of officers to trains serving that area, which the witnesses said reduced incidents.

No formal funding decisions were taken at the hearing. The only recorded formal action during the meeting was adoption of prior meeting minutes by unanimous consent. The committee adjourned after hearing the presentations and questions and did not take votes on appropriations during this session.

The committee asked MDOT and Amtrak to provide additional fiscal breakdowns — including a combined chart showing total revenue (ticket, federal and state funding) alongside operating and capital expenses — to aid legislative budget deliberations.