Musk says feds should privatize Amtrak; Duffy orders anti-crime plan for DC station

Billionaire and tech mogul Elon Musk, appointed by President Donald Trump to oversee the Department of Government Efficiency (DOGE), told attendees at a Morgan Stanley technology conference held this week that Amtrak and the U.S. Postal Service are among government services that should be privatized.

During a virtual appearance at the conference, Musk advised U.S. visitors not to ride Amtrak, calling the intercity national railroad "embarrassing," U.S. news outlets reported, citing a source in the conference room. 

“Amtrak is a sad situation. If you’re coming from another country, please don’t use our national rail. It can leave you with a very bad impression of America,” Musk reportedly said. He noted that the railroad operates at a net loss and relies on federal subsidies.

Amtrak relies on federal subsidies, ticket revenue and agreements with states to fund its operations. Federal grants help cover the cost of infrastructure and fleet upgrades. In November 2021, President Joe Biden signed the five-year Infrastructure Investment and Jobs Act, which included about $22 billion in direct appropriations for Amtrak to spend on capital, including new modern trains and upgraded stations and infrastructure. Many of those projects are underway.

Asked for a response to Musk's comments, Amtrak issued the following statement:

"Amtrak’s business performance is strong. Ridership and revenue are at all-time highs, and transformative projects are underway that will greatly improve the customer experience. By maintaining this momentum and the ongoing support we’ve built with our federal, state and private-sector partners, 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.

"We look forward to working with President Trump, his administration and Congress to build a world-class passenger-rail system featuring incredible new bridges, tunnel, and trains. A new era of rail is on the way as we serve more Americans than ever, from rural towns to big cities across the great United States."

Meanwhile, U.S. Transportation Secretary Sean Duffy yesterday urged District of Columbia leaders to improve transportation safety in the nation's capital as federal workers return to the office. In a letter to Amtrak CEO Stephen Gardner, Duffy said that Amtrak is responsible for security at Washington Union Station and "must show that it understands its obligations and is capable of protecting users of the station."

Last month, Amtrak reached an agreement to pay real estate firm Rexmark $505 million for control of Washington Union Station, which would end a long legal dispute and allow Amtrak to move forward with planned renovations of the facility, which is owned by the federal government but operated by the nonprofit Union Station Redevelopment Corp. Now that Amtrak has acquired the sublease with USRC, "Amtrak is now responsible for addressing security and preventing crime throughout the station, maintaining reliance on private funding, and serving all users of the station," Duffy wrote. 

To make sure the railroad "understands its responsibilities," it must submit to the Federal Railroad Administration a crime prevention plan within the next 30 days, the secretary said.

"Further, the plan must include a description of how Amtrak will coordinate security efforts with the National Park Service regarding Columbus Circle, Metro Rail Police regarding the Metro Station, USRC regarding security of the parking garage and the Metropolitan Police Department," Duffy wrote.