Amtrak is taking over the Hoosier State train starting March 1.
On Monday, the Indiana Department of Transportation announced its contract with Iowa Pacific Holdings, which has operated the Hoosier State train since July 2015, would only remain in effect until the end of February.
INDOT said Iowa Pacific wanted more money than was agreed upon in its contract.
"They were looking for a minimum monthly subsidy that was outside the budget we had," INDOT spokesman Will Wingfield said. "Even under the existing contracts, their needs were beyond what we had budgeted."
To date, INDOT has paid $500,000 to Iowa Pacific to provide on-board service, marketing and equipment for the Hoosier State and $3.9 million to Amtrak to run the actual train. It agreed to pay Iowa Pacific an additional $300,000 to operate the train through the end of February.
"It should be said we signed contracts in good faith with Iowa Pacific that was through the end of June, and then they came to us and said they we’re unable to continue under those contracts," Wingfield said.
INDOT didn't indicate what would happen to the Hoosier State if it's unable to find a long-term replacement for Amtrak.