Amtrak CEO Stephen Gardner Resigns Amid Privatization Controversy and Trump Administration Pressures - PRESS AI WORLD
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Amtrak CEO Stephen Gardner Resigns Amid Privatization Controversy and Trump Administration Pressures

Credited from: LATIMES

Key takeaways from recent news:

  • Amtrak CEO Stephen Gardner announced his resignation to maintain confidence from the Trump administration.
  • Elon Musk advocated for privatizing Amtrak, labeling it as “kind of embarrassing” during a recent conference.
  • Amtrak reported a record ridership of 32.8 million trips in fiscal 2024, surpassing pre-pandemic levels.

Amtrak CEO Stephen Gardner has abruptly resigned from his position amid increasing pressures from the Trump administration and discussions around privatizing the national rail service. In a statement, Gardner expressed his determination to ensure that “Amtrak continues to enjoy the full faith and confidence of this administration.” He has been a part of Amtrak for 16 years, having started as an intern, and served as CEO since January 2022. Gardner's departure has attracted attention in light of billionaire Elon Musk’s recent remarks advocating for the privatization of Amtrak during a technology conference.

Musk, who leads the Department of Government Efficiency under the Trump administration, stated that the government should “privatize everything we possibly can,” viewing the current state of government services, including Amtrak, as less efficient than private operations. He remarked that privatizing the rail service could allow it to become more competitive and innovative. Amtrak responded with a document that highlighted its successes despite federal funding constraints and drew comparisons to Britain’s rail privatization, which faced challenges leading to its re-nationalization.

Amtrak's board acknowledged Gardner's contributions, expressing their commitment to collaborating with President Trump and Secretary of Transportation Sean Duffy to enhance the passenger rail service in the U.S. The Transportation Department has not disclosed further details about Gardner’s resignation but emphasized the need for operational improvements in Amtrak's Washington, D.C. infrastructure.

Despite the backdrop of these leadership changes, Amtrak recently reported a significant recovery in ridership, with 32.8 million trips in the 2024 fiscal year, representing a 15% increase from the previous year and setting a new record following the challenges posed during the COVID-19 pandemic.

As the situation develops, it remains uncertain who will take over Gardner’s position and how these shifts may impact the future of Amtrak and U.S. rail services. For continuous updates on this topic, keep an eye on reputable news sources.

For more information, refer to the full articles from Los Angeles Times, HuffPost, and The Hill.

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