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Stephen J. Gardner, CEO of Amtrak, is stepping down after more than two years at the helm and 16 years with the rail service. His resignation, announced Wednesday, follows a rising political push to privatize Amtrak—fueled in part by recent comments from Elon Musk and shifting federal priorities under President Trump’s administration.
Gardner explained that action was taken to make sure Amtrak still has “full faith and trust” by this administration. On top of that, the board also spoke with this same sentiment, smiling bright at the chance ahead to work with the new president Donald Trump and the new Secretary Duffy to build the fine passenger rail system this country really deserves.
The resignation comes just weeks after Musk, now head of the Department of Government Efficiency (DOGE), criticized Amtrak’s performance and called for its privatization. Speaking at the Morgan Stanley Technology Media Telecom conference, Musk said it’s “embarrassing” how far behind U.S. rail is compared to other countries and argued that privatization creates the pressure needed for improvement.
“Anything that can be privatized should be,” Musk said. “If something can’t go bankrupt, it can’t improve.”
Amtrak hit record ridership in fiscal 2024—32.8 million passengers, up 15% from the year prior. Ticket revenue also reached a record $2.5 billion. Still, the company ran a $635 million operating loss. In a March memo, Amtrak defended its performance, arguing that profitability isn’t its mission. The memo cited Congress’ directive to maintain long-distance routes, especially in rural regions, as a major cost driver.
It also pointed out that most countries with advanced rail systems—like the ones Musk referenced—operate with heavy subsidies and don’t aim for profit either.
Critics argue privatizing services puts vital infrastructure at risk for smaller communities. Supporters argue it could force modernization and fiscal discipline.
Amtrak, created in 1971, is a federally chartered corporation with the U.S. government as majority stockholder. Its board is appointed by the president and confirmed by the Senate. It operates in 46 states, DC, and two Canadian provinces across 21,400 miles of track, employing more than 22,000 people.
Gardner is number 13 executives to leave since Amtrak really got started. His exit may signal a broader shift in U.S. rail policy—one where public service could soon face market forces.
