• Amtrak CEO Stephen Gardner stepped down amid rising political pressure, just as the railroad postedrecord ridership and revenue in 2024.

• Elon Musk calls for privatizing Amtrak, reigniting a decades-old debate over the role of public transportation in the U.S.

• Amtrak defends its public mission, citing essential rural routes and chronic underfunding as key challengesnot mismanagement.

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America's national passenger rail service is headed into uncertain territory after Amtrak CEO Stephen Gardner announced his resignation on March 19, citing a desire to maintain the company's credibility amid growing political scrutiny.

His exit came just as tech mogul Elon Musk called for privatizing Amtrak and the U.S. Postal Service, stating, Somethings got to have some chance of going bankrupt or theres not a good feedback loop for improvement.

Gardner, who had worked at Amtrak for 16 years and served as CEO since 2022, led efforts to modernize the fleet and expand service on the Northeast Corridor, including plans for higher-speed trains and broader national schedules.

He had also overseen a record year in 2024, with 32.8 million riders and $2.5 billion in ticket revenue. Yet Amtrak still reported a $635 million operating loss, much of it tied to long-distance service to rural areas, which Congress mandates it maintain.

Efficiency and innovation

While critics like Musk say privatization would lead to efficiency and innovation, Amtrak pushed back in a recent memo, arguing that this view ignores the facts.

The railroad noted that its purpose isnt profitability but public serviceespecially in areas where air and bus travel are limited. It also pointed out that other countries with world-class rail systems, like France and Japan, heavily subsidize their rail networks.

More than half a century of inadequate federal funding has left Amtrak with aged assets, the company wrote, which are more expensive to maintain and operate.

Amtrak is a government-chartered corporation, with its board appointed by the president and confirmed by the Senate. The Biden administration directed billions toward rail upgrades through the Infrastructure Investment and Jobs Act, fueling optimism for expansion.

But with Donald Trump back in office and Musks comments gaining attention, the future of public rail investment is now up in the air.

Amtrak currently operates in 46 states, D.C., and parts of Canada, covering more than 21,400 miles of track and employing over 22,000 people.

As the White House and Congress weigh next steps, the railroads long-standing tension between public service and financial sustainability is once again taking center stage.