The Virginia Railway Express has been notified that it may not receive about $10 million in state transportation funding, a development that could mean steep increases in passenger fares.
VRE, which serves about 20,000 riders daily on its lines from Fredericksburg and Manassas, was told in a letter from the state that $9.6 million in transportation funding expected from the federal government may not be coming this year. The annual allocation is generally used to pay “track access fees” charged by the CSX and Norfolk Southern rail lines.
News of the funding issue came to public light Friday at a meeting of VRE’s operations board.
The federal money typically comes through the Virginia Department of Rail and Public Transportation, officials said. But officials were notified that because of how federal dollars were allocated this year, the rail agency no longer has the funds available.
“This is a very serious issue to our budget,” said Doug Allen, chief executive of VRE.