America at a crossroads: The push to privatize Amtrak
- Paul Aage Hegvik
- Mar 30
- 4 min read
The future of Amtrak, the United States’ national passenger rail service, is at the center of a heated debate.
Some are pushing for privatization, saying it could improve service, lower costs, and make trains more efficient. Others warn that turning Amtrak into a private business could cut off vital routes, especially in rural areas, and raise ticket prices.
Elon Musk wants privatization
One of the loudest voices for privatization is tech entrepreneur Elon Musk. He recently criticized Amtrak, calling it outdated and inefficient, and suggested that private companies could do a better job running train services in the U.S.
On the other hand, Amtrak has pushed back. In a recent report, it pointed to countries like the UK that tried privatizing their railways, only to later bring them back under government control. Amtrak argues that privatization doesn't always lead to better service or lower prices.
A European rail group called ALLRAIL disagrees. They say the UK’s privatization actually helped increase ridership and improve service thanks to competition. They believe the U.S. could see the same benefits if it opened up the rail market to private operators.
CEO stepped down
Amtrak’s CEO, Stephen Gardner, stepped down suddenly in March 2025. While the official reason given was to support the company’s leadership transition, many believe the real reason was political pressure from the Trump administration.
The administration has been openly critical of Amtrak’s performance and has expressed strong support for privatizing the company.
Gardner joined Amtrak in 2009 and held several senior roles before becoming CEO in January 2022. He spent over 15 years with the company, deeply involved in modernization plans, including the launch of new high-speed Acela trains and efforts to expand Amtrak’s national network.
As CEO, Gardner was known for supporting government-backed investment in rail infrastructure, often pushing for long-term federal funding to improve service nationwide.
He emphasized that Amtrak was more than a business — it was a public service connecting communities across the country.Gardner’s leadership was seen by some as too closely tied to the old model of government-run passenger rail. His resignation is widely viewed as a strategic move to smooth the path for potential changes — including the introduction of private operators into the U.S. rail system.
Although Gardner didn’t openly oppose reform, he was cautious about privatization. He once said:
«Amtrak’s mission isn’t just about profits — it’s about people. We serve towns and cities that the private sector often overlooks.»
He also warned that relying too much on private rail could lead to inequality in access:
«The market can’t solve everything. Without public support, millions of Americans would lose vital connections.»
Record ridership and revenue
Despite all the controversy, Amtrak recently reported record ridership and revenue. More people than ever are using its trains, and the company is reducing its financial losses.
Still, many critics of privatization believe Amtrak should remain a public service. They argue that the rail network connects communities, boosts local economies, and provides essential transport for people who might otherwise have no other options.
The conversation about Amtrak’s future is far from over. As politicians, business leaders, and passengers continue to weigh in, the U.S. must decide whether trains should be run for profit — or for the public good.
Essential facts about Amtrak
Full name National Railroad Passenger Corporation (Amtrak)
Founded May 1, 1971Created by the U.S. Congress to take over intercity passenger rail service from private railroads, which had been losing money on passenger routes.
Ownership Amtrak is a publicly funded service, operated as a corporation owned by the U.S. federal government.
Headquarters Washington, D.C., United States
Operations and network
Number of employees
Approximately 20,000 (as of 2025)
Fleet size Around 400 locomotives and over 1,500 passenger railcarsIncludes diesel and electric trains, plus high-speed Acela Express trains
Number of routes Over 30 routes across the United States
Stations served More than 500 stations in 46 U.S. states, plus service to parts of Canada (e.g., Toronto, Montreal, Vancouver)
Daily trains Roughly 300 trains operate daily
Longest route The Texas Eagle and California Zephyr are among the longest, running over 2,400 miles across multiple states
Most popular route The Northeast Corridor (NEC), running from Boston to Washington, D.C.This corridor carries about 40% of all Amtrak passengers and includes high-speed Acela service.
Ridership and performance
Annual ridership (2024) Approximately 32.8 million passengers – a record high
Ticket revenue (2024)
Over $2.5 billion
On-time performance Varies by region, but Northeast Corridor trains are among the most punctualLong-distance trains often face delays due to shared tracks with freight railroads
Financial situation
Amtrak continues to receive federal subsidies to support operations, especially for long-distance and rural routes that are less profitable.
In 2024, Amtrak reduced its operating losses by 9%, showing improvement in cost control.
Despite financial challenges, Amtrak has improved its revenue and ridership, moving toward greater sustainability.
Recent developments
High-speed rail upgrades are ongoing, including the next-generation Acela trains expected to launch soon on the Northeast Corridor.
Debates around privatization have intensified, with some calling for private operators to take over parts of the network.
In March 2025, Amtrak’s CEO Stephen Gardner resigned, marking a possible shift in the company’s direction under political pressure.
