“As a Member of Congress, I am strongly opposed to asking taxpayers to provide an unsecured loan of more than two billion dollars to the Dakota, Minnesota and Eastern Railroad (DM&E), a company that an established, independent firm, Bearing Point, found to be ‘a poor credit risk.’”

“In a time of war and record federal deficits, it is irresponsible for Congress to gamble unprecedented public funds on this risky private venture.  The federal government does need to increase railroad competition and make major new investments in transportation infrastructure, but through a transparent process that allows Congress to conduct necessary oversight and stewardship of scarce tax dollars.”

“Despite its questionable finances and abysmal safety record, the DM&E stands to receive the single largest loan ever granted by the federal government to a private company.  This massive loan is a risky deal for America’s taxpayers since the federal government would be responsible for covering all losses if the railroad defaults.  And, because the DM&E is a privately held company, neither its financial condition nor the essential terms of the multi-billion loan are available to the public.”

“I urge the Federal Railroad Administration and my colleagues in Congress to signal a return to fiscal responsibility in Washington by protecting taxpayers and rejecting this proposal.”

###