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Trump DOT Slashes ‘Exorbitant’ Amtrak Executive Payouts to Fund 18,000 Frontline Workers

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Transportation Secretary Sean Duffy Redirects Half of Leadership Bonuses to Union Employees Citing ‘Misplaced Priorities’ from Prior Administration

the staff of the Ridgewood blog

WASHINGTON, D.C. – In a move hailed by labor unions, the U.S. Department of Transportation (DOT) announced Thursday that it has successfully negotiated an agreement with Amtrak to redirect executive bonus funds directly into the pockets of its frontline employees.

The decision means 18,000 unionized Amtrak workers will receive a $900 end-of-year bonus this holiday season, recognizing what officials described as a “record year” for ridership and revenue.

Restructuring “Misplaced Priorities”

The DOT, under the Trump administration, revealed that it struck an agreement with Amtrak’s management and board to shift roughly half of the planned leadership bonuses. The agency aggressively pursued the reduction of what it called “exorbitant” executive payouts put in place during the previous administration.

Transportation Secretary Sean Duffy took to X (formerly Twitter) to reiterate the announcement, stating “Christmas is coming a little early” for the workers and asserting the administration’s focus:

“The Trump administration is delivering LOWER COSTS and BIGGER PAYCHECKS.”

The DOT explicitly criticized the prior administration, noting that it “discovered Biden-Buttigieg era bonus structures for Amtrak’s executive team that resulted in exorbitant payouts for senior staff,” which it characterized as “misplaced priorities.” The agency stated it will now restructure these levels to ensure executive pay remains “more competitive.”

A “Long-Overdue Recognition” for Labor

Labor leaders quickly praised the policy shift. Mark Wallace, president of the Brotherhood of Locomotive Engineers and Trainmen, released a statement supporting the move:

“Due to the urging of the Trump administration, end-of-year bonuses will now go to 18,000 frontline workers rather than being limited to the executive ranks. This long-overdue recognition of the employees who keep the railroad moving is a step in the right direction.”

The current DOT has previously criticized the Biden administration, particularly former Transportation Secretary Pete Buttigieg, over perceived backlogs in infrastructure safety improvements. A spokesperson for Buttigieg, however, has dismissed these previous criticisms as “nonsense.”

The redistribution of bonuses marks a decisive win for Amtrak’s unionized workforce as the rail service celebrates record performance.

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