The Blubber

Elon Musk Calls for Privatization of USPS and Amtrak

Elon Musk, who is advising President Donald Trump on efforts to shrink the U.S. government, said Wednesday that the U.S. Postal Service (USPS) and Amtrak should be privatized.

"I think logically we should privatize anything that can reasonably be privatized," Musk stated at a Morgan Stanley conference. "I think we should privatize the Post Office and Amtrak, for example… We should privatize everything we possibly can."

Musk acknowledged that Congress would likely need to approve such actions.

Trump’s Postal Service Overhaul Proposal

Last month, Trump floated the idea of merging the Postal Service with the U.S. Commerce Department, a move Democrats argue would violate federal law.

The Postal Service has lost over $100 billion since 2007, including $9.5 billion in the fiscal year ending September 30. However, earlier this month, it reported a $144 million fourth-quarter profit. The decline in first-class mail—down 80% since 1997—has hurt USPS, bringing mail volume to its lowest levels since 1968.

USPS declined to comment on Musk’s remarks.

Amtrak’s Response to Privatization Calls

Musk also criticized Amtrak, saying that compared to China’s high-speed rail, the U.S. passenger train system is "a sad situation" and "leaves a very bad impression of America."

However, Amtrak defended its progress, stating that its business performance is at record highs.

"Ridership and revenue are at all-time highs… Our nationwide network, as mandated by law, is on track to reach operational profitability for the first time in history during this administration," Amtrak said Wednesday.

In December 2024, Amtrak surpassed pre-pandemic ridership levels, with 32.8 million passenger trips—15% higher than in 2023. The company reduced its operating loss to $705 million for the fiscal year, a 9% improvement over 2023.

Amtrak announced in March plans to expand services on the East Coast as part of its goal to double nationwide ridership to 66 million passengers by 2040.

Federal Funding for Rail Infrastructure

Congress approved $66 billion for rail projects under the 2021 infrastructure bill, with $22 billion allocated to Amtrak over five years in addition to its annual funding.

During Trump’s first term, his administration repeatedly attempted to cut Amtrak’s federal funding, which amounted to $2.4 billion last year.