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Amtrak CEO Stephen Gardner has announced his resignation, citing the need to maintain the confidence of the current administration.

His departure follows recent comments from billionaire Elon Musk, who criticized Amtrak's operations and suggested the passenger rail service should be privatized.

Gardner, who has been with Amtrak for 16 years and served as CEO since 2022, said in a statement Wednesday, "I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration."

A White House official confirmed that Gardner was asked to step down, though Amtrak declined to comment on whether he had been pressured to resign.

According to CNN, the Amtrak board issued a statement saying, "We look forward to working with President Trump and Secretary Duffy as we build the world-class passenger rail system this country deserves."

Musk, who serves as the head of the Department of Government Efficiency (DOGE), recently voiced strong opinions about Amtrak at the Morgan Stanley Technology Media & Telecom conference.

"It's kind of embarrassing how other countries have way better passenger rail than we do," Musk stated. "Amtrak is a sad situation. I think we should privatize anything that can be privatized, just so there's a feedback loop for improvement."

Amtrak Reports Record Ridership but Faces $635M Loss

Amtrak, a federally chartered corporation, receives significant government funding and is overseen by a board that includes the US Transportation Secretary.

The service reported a record 32.8 million passengers in fiscal year 2024, marking a 15% increase from the previous year.

Despite this, Amtrak posted an operating loss of $635 million, though ticket revenue hit a record $2.5 billion, USA Today said.

Musk's comments have reignited debates about Amtrak's financial performance and its role as a government-funded service. Critics argue that Amtrak should operate as a private company to improve efficiency, while supporters say it provides essential transportation, particularly in rural areas.

In a March memo, Amtrak pushed back against calls for privatization, stating that profitability is not its main mission. The company pointed out that many national rail systems in other countries also rely on government subsidies and are not expected to turn a profit.

Congress has historically provided substantial funding for Amtrak. In 2021, a $66 billion infrastructure bill allocated $22 billion to Amtrak over five years.

In December 2023, former President Joe Biden announced $16.4 billion in grant funding for 25 rail projects on the Northeast Corridor, the busiest rail route in the US.

Despite Musk's criticisms, Amtrak has continued expanding its services. The company recently announced plans to increase passenger rail options along the East Coast as part of its goal to double nationwide ridership to 66 million passengers by 2040.