What Elon Musk's Amtrak Idea Means for High-Speed Rail

Elon Musk has voiced ambitions to privatize Amtrak, the biggest high-speed rail provider in the U.S., which could have a huge impact on the technology's future.

President Donald Trump's adviser said that Amtrak, which is supported by state and federal subsidies, was in "a sad situation" and that privatizing it would boost productivity for high-speed rail in the U.S.

Newsweek contacted Amtrak for comment via email.

Why It Matters

Amtrak is the largest high-speed rail provider in the U.S., carrying more than 30 million passengers a year. However, Musk's role in government is to cut down on public spending, and his highlighting of Amtrak indicates that the Department of Government Efficiency, which has already shut down several other federal programs, could be taking a look at Amtrak next.

What To Know

Speaking at the Morgan Stanley conference on March 5, Musk told listeners that Amtrak was an example of a service that should be privatized, as it wasn't being properly managed.

"I think logically we should privatize anything that can reasonably be privatized," Musk said. "I think we should privatize the Post Office and Amtrak for example....We should privatize everything we possibly can."

He later said that the high-speed rail system "is a sad situation" and that "it will leave you with a very bad impression of America."

Amtrak is undergoing major construction work in almost 30 areas along the Northeast Corridor, where the bulk of its tracks are. Any clampdown on federal or state funding, such as Congress' 2021 $22 billion grant, would put the upgrades in jeopardy, but some industry actors think Musk's plan could be a boon.

A spokesperson for AmeriStarRail, a company looking to create a private-sector partnership with Amtrak for the management of the Corridor, told Newsweek that privatizing the system could prompt investment and improve services for passengers.

"Because Amtrak's current Northeast Corridor ridership market share among rail, highway, bus and air modes is in the single digits, AmeriStarRail and our private-sector investors recognize a significant opportunity to grow ridership, revenue and profits," AmeriStar Chief Operating Officer Scott Spencer told Newsweek.

"This will attract both private investment for AmeriStarRail's operation of Amtrak's high-speed trains on the Northeast Corridor as well as more public investment in the Northeast Corridor infrastructure."

Amtrak has been reluctant to accept any notion of privatization, defending its record of recovery after the COVID-19 pandemic, with passenger numbers rising to 32.7 million a year.

"Business performance is strong. Ridership and revenue are at all-time highs," a spokesperson for Amtrak said in response to Musk's comments.

"The train service we operate across our nationwide network, as mandated by law, is on track to reach operational profitability—for the first time in history—during this administration."

What People Are Saying

Amtrak, in a statement: "Amtrak is meeting record demand, all while delivering mega construction projects, upgrading fleet, and serving more places with state partners. With strong federal support from the Trump-Vance administration, Amtrak can continue investments in American infrastructure and jobs, strengthen the economy, and make America a world leader in rail once again."

What Happens Next

The White House has not issued further intentions for privatization, though Musk has also voiced opposition to the U.S. Postal Service and has suggested it could be privatized, too.

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