Amtrak may be out of business

Catch up with NBC News Clone on today's hot topic: 6937175 - Breaking News | NBC News Clone. Our editorial team reformatted this story for clarity and speed.

It could be the end of the line for Amtrak if the President has his way.

It could be the end of the line for Amtrak if the President has his way.His budget eliminates billions of dollars in subsidies for the rail carrier.

Since Amtrak's creation in the early 70's, it has relied heavily on government subsidies.

If those subsidies are wiped out, that could derail Amtrak, which would certainly be bad news for the roughly 700,000 people in the valley who ride Amtrak every year.

Since 1970, Amtrak has received a total of $29 billion in federal subsidies.

The taxpayers have given Amtrak nearly $1 billion a year to keep it on track.

The government's funding covers more than a third of Amtrak's operation costs.

Amtrak administration said the President's lack of funding for the company indicates the White House has "no plan for Amtrak other than bankruptcy."

However, Amtrak critics said eliminating government subsidies would force the company to restructure and reform its operations.

In response, Amtrak President and CEO David Gunn wrote a statement to Amtrak workers nationwide Monday, saying "Obviously, the president's proposal is irresponsible and a surprising disappointment. It doesn't acknowledge all the hard work you've done over the past two years to run a tighter and better ship. Our costs are more under control than ever before. That's quite an accomplishment."

Supporters of the budget cut for Amtrak maintain this is an opportunity for Amtrak to improve its services and reform a system that's not working.

Critics of the President's budget said Amtrak will go under without the government subsidies.

An Amtrak spokesperson said none of Amtrak's routes are profitable, including the one that leads to the Bakersfield station.

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