DM&E LOAN APPLICATION REJECTED BY DEPT. OF TRANSPORTATION CREDIT COUNCIL

"U.S. House"

02/26/2007

Walz calls decision "victory for good government"


(Washington, D.C.) - Today, Rep. Tim Walz announced that the Department of Transportation Credit Council has rejected the loan application submitted by the Dakota, Minnesota & Eastern Railroad. Walz spoke with Transportation Secretary Mary Peters earlier today who confirmed that the Credit Council denied the $2.3 billion loan application.

"This is a victory for good government and accountability," said Walz. "The citizens of this district demanded close scrutiny of this loan and they got it. This loan proposal brought people from all walks of life together to insist that members of Congress better monitor taxpayer funds. I believe that today's decision is a direct result of congressional and citizen inquiry and oversight."

"Let me reassure the citizens of southern Minnesota that I support expanded rail service. My objective has always been to ensure proper oversight of this loan occurs," said Walz. "Today we can start moving forward. We can work together to expand rail access in a responsible way that protects citizens and communities while expanding economic opportunity for agricultural producers and energy providers."

"Despite the fact that this loan is no longer under consideration, I will continue to move forward with the legislation I recently introduced. The "Congress Must Co-Sign Act" requires that the Congress exercise appropriate oversight, should a similar situation arise in the future," said Walz.

Walz, a freshman member of Minnesota's congressional delegation campaigned on the lack of congressional oversight with regard to the proposed DM&E Railroad Expansion project. Walz has consistently called for increased accountability, transparency and attention to safety concerns.