U.S. commuter trains need repairs, money

WASHINGTON (Reuters) - U.S. commuter trains are in bad shape and, even though more money is flowing into public transportation, they are not receiving enough funding to make needed upgrades, the nation's transportation secretary told Congress on Thursday.

Secretary Ray LaHood said that more than one-third of the trains and other equipment operated by the seven largest rail transit agencies are "either in marginal or poor condition, indicating that these assets are near or have already exceeded their expected useful life," according to his prepared testimony to the Senate Banking Committee.

He added that those operators need about $50 billion to update equipment. The stimulus bill passed last month will send $8.4 billion to local transit authorities to make some repairs.

A recent study by the department found that between 1991 and 2009 the amount of federal funding for the seven agencies' transportation systems as a whole increased, but a larger portion went to new endeavors such as bus services than to rail, he said.

LaHood's comments come as Congress begins the process of authorizing millions of dollars for surface transportation projects over the next few years. The Highway Trust Fund, which is supported by taxes, currently provides most funding.

President Barack Obama, though, recently proposed moving transportation funding to the annual budget. LaHood said the president will explain his plans in April.

LaHood noted that 2.86 cents of federal gasoline and diesel taxes are dedicated to a mass transit account in the Highway Trust Fund that provides $5 billion annually for public transportation.

"However, as you know, the Mass Transit Account, like the Highway Account, is projected to become insolvent in the coming years assuming current-law spending and revenues," he said. "Clearly, the way in which public transportation is funded on a long-term sustainable basis will have to be addressed as we move forward."

Sen. Chris Dodd, the Connecticut Democrat who chairs the Banking Committee, agreed that the United States needs "a bold, new commitment to public transportation."

"Too often over the past half century, transit has taken a back seat to funding for our roads and highways," he said in his opening statement.

"While the federal government is prepared to pick up 80 percent of the costs for new highway capacity projects, it generally pays less than half for new transit projects."

(Reporting by Lisa Lambert; Editing by Dan Grebler)