Amtrak CEO Steps Down Amidst Privatization Threats from Trump and Musk
Stephen Gardner, the Chief Executive Officer of Amtrak since 2022, has resigned from his position amidst growing pressure from the Trump administration and Elon Musk regarding the potential privatization of the national railway service. The abrupt departure comes as Amtrak faces increasing scrutiny and threats to its federal funding, raising concerns about the future of rail travel in the United States.
Gardner, a long-time advocate for rail transportation, expressed his decision to step down was to ensure that Amtrak continues to enjoy the full faith and confidence of the current administration. Prior to his role as CEO, Gardner served as Amtrak’s chief operating and commercial officer starting in 2009 and as the organization’s president starting in 2020, demonstrating his extensive experience and commitment to the company.
Beyond his executive roles, Gardner possesses a deep passion for trains, having worked as a conductor and operations manager for the Maine Central Railroad. His affection for rail even extended to his musical endeavors, as he founded a punk band called Chessie, named after the defunct Chesapeake and Ohio Railway.
Despite his qualifications and dedication, Gardner found himself in a challenging position as the Trump administration intensified its focus on Amtrak. Trump’s past attempts to cut federal funding for the company by half during his first term have now evolved into a more aggressive approach. Billions of dollars in support for the railway were caught in Trump’s federal funding freeze earlier this year, further jeopardizing Amtrak’s financial stability.
Adding to the pressure, Department of Transportation Secretary Sean Duffy has been urging Amtrak to dismantle its diversity, equity, and inclusion (DEI) programs and implement mandatory return-to-office policies for employees. Failure to comply with these demands could result in the loss of federal support, further straining Amtrak’s resources.
Even as Gardner attempted to accommodate the Trump administration’s demands, it became increasingly clear that Amtrak would remain under intense scrutiny. The situation was further complicated by Elon Musk’s recent criticism of Amtrak and his suggestion that the company, along with the United States Postal Service, should be privatized.
Musk publicly derided Amtrak as "kind of embarrassing" and warned international visitors against using the national rail service, claiming it could leave them with a negative impression of America. His remarks underscore the growing sentiment among some circles that privatization could offer a more efficient and effective solution for Amtrak’s challenges.
However, Amtrak is coming off a year with record ridership, facilitated in no small part by ongoing expansion of available routes that are part of a plan to serve an additional 40 million people with rail service in the coming years.
While proponents of privatization argue that it could lead to improved service and reduced costs, critics raise concerns about the potential consequences for accessibility, affordability, and safety. The debate over Amtrak’s future has intensified as the Trump administration and influential figures like Musk push for privatization, while others advocate for continued public investment and oversight.
To illustrate the potential pitfalls of privatization, it’s worth examining the track record of Musk’s own ventures in the transportation sector. The Boring Company, Musk’s attempt to revolutionize urban transportation through underground tunnels, has faced numerous setbacks and delays.
After more than seven years of work, the company has only completed 2.4 miles of a proposed 68-mile network in Las Vegas, operating with minimal oversight or intervention from regulators. Moreover, the Boring Company has a history of promising ambitious projects only to delay or abandon them due to cost overruns and technical challenges.
Compared to the Boring Company’s struggles, Amtrak’s performance appears relatively stable and reliable. Despite its challenges, Amtrak continues to serve millions of passengers across the country, providing a vital transportation link for communities and businesses.
The departure of Stephen Gardner as CEO marks a significant turning point for Amtrak. The company now faces an uncertain future as it navigates the political and economic pressures surrounding privatization. The debate over Amtrak’s fate will likely continue in the coming months, with profound implications for the future of rail travel in the United States.
Whether Amtrak remains a publicly funded entity or transitions to a private model, the ultimate goal should be to ensure a safe, efficient, and accessible rail system for all Americans. The decisions made in the coming years will shape the future of rail transportation for generations to come.
