Trump administration turns up the heat on D.C., WMATA, and Amtrak

The Trump administration is pushing the CEOs of Amtrak, the Washington Metropolitan Area Transit Authority and the mayor of Washington D.C. to make transportation in and around the capital city safer and more efficient.

"The President has called for people to return to office, and it is critical we ensure workers' safety during their daily commute," said U.S. Transportation Secretary Sean P. Duffy.

"This includes reducing crime and fare evasion on the D.C. metro system and bus system to ensure people using public transit feel safe."

The direction may provide clues about how infrastructure funding may transform under the Trump administration.

The Secretary spells out his expectations in three letters giving the mayor and the CEO of Amtrak 30 days to submit plans for achieving improvement goals, while WMATA's deadline is March 19.

WMATA has a long history of troubled finances and took an especially hard hit during the pandemic. In July the authority issued $625.4 million of second lien dedicated revenue bonds by negotiated sale with some of proceeds funding capital costs.

S&P Global Ratings and Kroll Bond Rating Agency both rated the issuance as AA.

The DOT's letter directs WMATA's chief Randy Clark to report out to the Federal Transit Administration on efforts to curtail crime and fare evasion along with an accounting of any federal funding not flowing from the FTA.

Per the letter, "Please recognize that Federal transit law explicitly allows recipients to use capital grants for capital expenses for crime prevention and security activities. WMATA should target federal resources expeditiously and appropriately for these eligible activities."

DOT guidance is also targeting crime at Washington's Union Station which was acquired by Amtrak in February via eminent domain and a $505 million dollar payment to Rexmark, a New York based holding company which foreclosed on the property after developer Ben Ashkenazy defaulted on loans.

The federal government owns the land under the station, Amtrak now controls the rails, gates, and commercial spaces.

The DOT's letter encourages Amtrak to improve safety at the station by leveraging federal resources. Per the letter, "Amtrak should also consider expanding its coordination to include other Federal security agencies, such as the Department of Homeland Security."

"Amtrak must also track and report to Federal Railroad Administration all funds being used for security and public safety activities at the station, including both operational costs and planned projects."

The DOT's letter to Washington's Mayor Muriel Bowser focuses on road safety in general and public art in particular.

Per the letter, "the application of murals or other forms of artwork within the traveled way can distract from the critical task of safe travel for everyone, including motorists, bicyclists, and pedestrians."

A day before the letter went out the mayor announced that the two-city block sized mural declaring that "Black Live Matter," that has adorned 16^th Street NW across Lafayette Park from the White House since June 2020 would be painted over.

"We have bigger fish to fry than fights over what has been very important to us and to the history, and especially in our ability to keep our city safe during that time, that mural played a very important part," said Bowser. "But now our focus is on making sure our residents and our economy survives."

At the end of February, the city's chief financial officer revised revenue forecasts showing a $21 million dollar hit and pinning part of the blame on "forecasted sharp declines in employment levels as the Federal government proceeds with reducing its workforce significantly."