Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

U.S. DOT says Republican budget plan would cut rail inspections, shut air traffic towers

Published 04/26/2023, 02:29 PM
Updated 04/26/2023, 02:30 PM
© Reuters. FILE PHOTO: A Norfolk Southern train rests near the University of North Carolina's energy generation plant, after delivering coal to the facility, in Chapel Hill, North Carolina, U.S. August 11, 2022. REUTERS/Jonathan Drake

WASHINGTON (Reuters) - The U.S. Department of Transportation (DOT) on Wednesday said a Republican budget cut proposal would shut down 375 federally-staffed and contract-run air traffic control towers around the country and result in 7,500 fewer rail safety inspection days.

Overall, it said the Republican plan, which would sharply reduce budget spending in exchange for a short-term increase in the debt ceiling, would reduce funding for U.S. transit and highway infrastructure projects by nearly $5.2 billion.

The White House has said President Joe Biden would veto the legislation, and has called on Congress to raise the debt limit without conditions.

President Biden and his administration have pushed back hard against the proposal from Republican House of Representatives Speaker Kevin McCarthy, which would implement $4.5 trillion in spending cuts with a $1.5 trillion increase in the $31.4 trillion U.S. debt limit.

"House Republicans’ proposal would slash funding for programs the American people depend on in their everyday lives, including funding that’s vital for ensuring transportation safety and improving our country’s infrastructure," DOT said in a factsheet.

It said it estimated that cutting critical programs by 22% would lead to nearly 7,500 fewer rail safety inspection days and over 30,000 fewer miles of track inspected annually, at a time when lawmakers are calling for more inspections in the wake of the Norfolk Southern (NYSE:NSC) derailment disaster.

It said the plan would also shut down services at some 375 of about 550 air traffic control towers, potentially increasing security wait times at Transportation Security Administration check points by over two hours.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Republican terrorists, plain and simple
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.