Elon Musk Calls for Privatization of USPS and Amtrak Amid Financial Struggles

Billionaire Elon Musk has urged the privatization of the U.S. Postal Service (USPS) and Amtrak, arguing that “anything that can reasonably be privatized” should be. Speaking at a Morgan Stanley conference, Musk stated, “We should privatize everything we possibly can,” adding that such moves would likely require congressional approval.

USPS has faced mounting financial losses, exceeding $100 billion since 2007. Despite reporting a $144 million fourth-quarter profit, the agency continues to struggle, with first-class mail volume plummeting 80% since 1997. Meanwhile, Amtrak reported record ridership of 32.8 million trips in 2024, surpassing pre-pandemic levels, but still posted a $705 million operating loss for the year ending September 30.

Musk criticized Amtrak’s performance compared to China’s high-speed rail, calling it a “sad situation” that leaves a negative impression of the U.S. However, Amtrak defended its progress, stating it is on track for operational profitability for the first time in history. The rail service is expanding on the East Coast and aims to double nationwide ridership to 66 million by 2040.

Federal funding remains a contentious issue. Congress allocated $66 billion for rail infrastructure in 2021, with $22 billion directed to Amtrak over five years. In contrast, former President Donald Trump sought to reduce Amtrak funding during his first term, despite the rail operator receiving $2.4 billion in federal support last year.

Musk’s remarks reignite debates on the efficiency of government-run services and whether privatization could improve their financial sustainability. Neither USPS nor Amtrak provided direct responses to Musk’s comments, but the discussion highlights ongoing concerns over the future of U.S. transportation and mail services.