Trump Forces Amtrak CEO’s Sudden Exit as Musk Eyes Railway Privatization

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Amtrak CEO Stephen Gardner resigned immediately after more than four years leading the national passenger railroad, following pressure from the White House administration. Sources indicate the decision came at President Trump’s request.

Gardner stated he was stepping down to “ensure that Amtrak continues to enjoy the full faith and confidence of this administration.”

Transportation Secretary Sean Duffy emphasized the need to address safety and security concerns at Washington’s Union Station, particularly regarding homelessness and crime affecting commuter safety. Meanwhile, presidential advisor Elon Musk has suggested privatizing the railroad.

Despite previous attempts to reduce federal funding, Congress recently approved $2.42 billion for Amtrak through September 2024. The railroad has shown strong performance, with ridership exceeding pre-pandemic levels and reaching 32.8 million customer trips in 2023, a 15% increase. Passenger revenue grew 9% to $2.5 billion, while operating losses decreased 9% to $705 million.

Recent challenges include service disruptions, notably a temporary suspension between New York and Washington due to power issues. However, Amtrak continues expansion plans to double ridership to 66 million by 2040.

The railroad received significant federal support through the 2021 infrastructure bill, including $22 billion over five years. In 2023, $16.4 billion was allocated for Northeast Corridor projects, addressing critical infrastructure needs along the Boston to Washington route, which serves 800,000 daily travelers and represents 20% of the U.S. economy.

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