Amtrak CEO Stephen Gardner Resigns Amid Concerns Over Trump Administration Support

WASHINGTON, March 19 (Reuters) – Stephen Gardner, the Chief Executive Officer of Amtrak, has announced his immediate resignation after serving more than four years at the helm of the U.S. passenger railroad. Gardner cited concerns regarding the company’s ability to maintain the support of President Donald Trump’s administration as the primary reason for his departure.

“I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration,” Gardner stated in a formal announcement released Wednesday. The decision comes at a time of potential uncertainty for the future of Amtrak, particularly given President Trump’s past attempts to slash the company’s funding and the growing privatization advocacy among his advisors.

The news of Gardner’s resignation introduces a layer of complexity to Amtrak’s current trajectory. The railroad, a vital component of the nation’s transportation network, has experienced notable growth in ridership and revenue, and has ambitious plans for future expansion. However, its reliance on federal funding makes it vulnerable to political shifts and changes in administration priorities.

The departure of Gardner, a seasoned executive with a deep understanding of the intricacies of rail operations and government relations, could potentially disrupt Amtrak’s long-term strategic goals. It also raises questions about who will step into his position and how the new leadership will navigate the challenges of securing necessary funding and support from the Trump administration.

Gardner’s exit follows recent comments from Elon Musk, the billionaire entrepreneur and advisor to Trump, who suggested that Amtrak should be privatized. Musk’s advocacy for privatization echoes a broader sentiment within some circles that government-owned entities should be transferred to private ownership to improve efficiency and reduce taxpayer burden.

The White House and the Transportation Department have not yet responded to requests for comments on the matter. Amtrak also has not released any information beyond Gardner’s statement.

Throughout his first term, President Trump repeatedly proposed deep cuts to Amtrak’s budget. In 2023, Amtrak received approximately $2.4 billion in federal funding. Congress, however, has consistently pushed back against those proposed cuts, recognizing the vital role that Amtrak plays in connecting communities and facilitating transportation across the country. Just last week, Congress approved $2.42 billion for Amtrak through September 30, signaling a continuation of the existing funding level.

Despite the political headwinds, Amtrak has recently shown positive performance metrics. The company reported that ridership in 2024 has surpassed pre-COVID-19 levels for the first time, reaching a record high even with reduced capacity. In 2023, Amtrak experienced a 15% surge in ridership, reaching 32.8 million customer trips. Passenger revenue also rose by 9% to $2.5 billion. Although the rail operator posted an adjusted operating loss of $705 million for the year ending September 30, this figure represents a 9% improvement compared to the previous year, reflecting a trend towards improved financial stability.

Amtrak announced in March plans to significantly expand passenger services, especially on the East Coast, with the objective of doubling nationwide ridership to 66 million passengers by 2040. This ambitious expansion plan highlights the company’s long-term vision for growth and its role in addressing future transportation needs.

In 2021, Congress approved a historic $66 billion for rail projects as part of a broad infrastructure bill, with $22 billion specifically allocated to Amtrak over a five-year period, supplementing its regular funding streams. This influx of capital has the potential to accelerate Amtrak’s modernization efforts and enhance its infrastructure.

Under the Biden administration, considerable support was directed toward Amtrak. In 2023, then-President Biden announced $16.4 billion in grant funding for 25 rail projects along Amtrak’s Northeast Corridor, which stretches from Boston to Washington, D.C. This is the busiest rail corridor in the United States, supporting an estimated 800,000 daily trips in a region that accounts for 20% of the U.S. economy.

The Northeast Corridor, while heavily utilized, is also plagued by aging infrastructure. Many bridges, tunnels, and other critical components of the corridor are in urgent need of repair, particularly a vital tunnel connecting New York City and New Jersey. These investments aim to address these critical infrastructure needs, enhance the reliability and efficiency of rail service, and boost economic growth throughout the region.

The resignation of Stephen Gardner throws a new element of uncertainty into Amtrak’s future trajectory. While the railroad is riding high on increased ridership and new federal funding, questions remain about the political support it can expect from the current administration, especially with influential voices calling for privatization. The coming months will be critical for Amtrak as it navigates these challenges and works to maintain its role as a critical component of the nation’s transportation system. The search for a new CEO will undoubtedly be a key focus, and the choice will likely signal the direction that Amtrak takes in the years to come.