By David Shepardson
WASHINGTON, June 24 (Reuters) - The White House asked Congress on Wednesday for $1 billion to boost the pensions of workers at former General Motors auto parts unit Delphi that were cut during the Detroit automaker's 2009 bankruptcy restructuring.
The White House is also seeking $1 billion to help reconstruct New York's Penn Station and $500 million to support ongoing construction projects at Washington's World War II memorial and the Tidal Basin as part of a supplemental funding
request.
The White House also wants Congress to let the Federal Aviation Administration reallocate any remaining funds in the $12.5 billion air traffic control modernization effort approved last year to any specific priority — rather than the air traffic spending plans set by Congress last year.
The Delphi cuts affected just over 20,000 salaried retirees, including about 5,000 in Ohio. Some experienced pension reductions of up to 70%, and lawmakers have been pushing for years to restore the cuts.
As part of the 2009 $50 billion government auto bailout of GM during the Obama administration, the automaker agreed to assume the liabilities from hourly Delphi employees, but the pensions of salaried workers were turned over to the Pension Benefit Guaranty Corporation.
GM declined to comment.
Last month, the Transportation Department said it is providing another $200 million to begin construction by the end of next year on an $8 billion plan to rebuild Penn Station, a key transit artery.
U.S. passenger railroad company Amtrak said the plan includes expanding track capacity, building a grand entrance on Eighth Avenue to a new train hall and replacing aging walkways with open modern concourses. Penn Station is the busiest transit hub in the U.S., serving 10 million Amtrak passengers annually and 100 million total including regional train systems.
The announcement means New York will not opt to move Madison Square Garden, which sits on top of Penn Station and is home to the New York Knicks basketball team, the New York Rangers hockey team, various other sporting events, concerts and shows.
(Reporting by David Shepardson; Editing by Sonali Paul)
