the staff of the Ridgewood blog
Newark Penn Station NJ, in a major shake-up for U.S. rail travel, Amtrak CEO Stephen Gardner has resigned after pressure from the White House, following calls for leadership changes by President Donald Trump, according to sources.
Gardner Resigns to Maintain Amtrak’s Federal Support
Gardner, who led Amtrak for over four years, announced his resignation on Wednesday, citing the need to ensure the railroad maintains the support of the Trump administration.
“I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration,” Gardner stated.
While the White House confirmed that Gardner had been asked to step down, an Amtrak spokesperson declined to comment on whether his departure was forced.
Calls for Safety & Infrastructure Improvements
Transportation Secretary Sean Duffy linked the leadership shake-up to growing concerns about safety and crime at Washington’s Union Station, a major Amtrak hub.
“It’s time for Amtrak leadership to clean up Union Station,” Duffy said. “It’s time to rid our nation’s treasures of homelessness and crime. Commuters and travelers need to feel safe in our capital.”
Elon Musk & Trump’s Push for Privatization
The shake-up comes amid renewed discussions on privatizing Amtrak. Billionaire Elon Musk, an adviser to Trump on government restructuring, recently suggested that Amtrak should be privatized.
This marks a continuation of Trump’s stance during his first term, when he repeatedly sought to cut Amtrak’s funding, despite its growing ridership and revenue.
Amtrak’s Recent Growth & Challenges
Despite funding debates, Amtrak reported record ridership in 2024, surpassing pre-pandemic levels for the first time.
- 2023 Ridership: Up 15% to a record 32.8 million customer trips
- 2023 Revenue: Hit $2.5 billion, a 9% increase from the previous year
- 2024 Operating Loss: Reduced to $705 million, down 9% from 2023
However, service disruptions have plagued Amtrak:
- November 2023: A power failure in Philadelphia forced the suspension of all service between New York and Washington, stranding thousands of passengers.
- March 2024: Amtrak announced expanded East Coast services, aiming to double ridership to 66 million by 2040.
Billions in Federal Funding at Stake
Amtrak has been a major beneficiary of federal infrastructure investments:
- 2021 Infrastructure Bill: Approved $66 billion for rail projects, with $22 billion directly for Amtrak over five years.
- 2023: Then-President Joe Biden announced $16.4 billion for 25 Northeast Corridor rail projects (Boston-Washington), where 800,000 daily trips support 20% of the U.S. economy.
Much of this funding is needed for urgent repairs to bridges, tunnels, and tracks, including the New York-New Jersey tunnel, a critical bottleneck for the corridor.
What’s Next for Amtrak?
As Amtrak faces leadership uncertainty, funding debates, and a push for privatization, the future of U.S. rail travel remains in flux. Will Trump’s administration cut funding further, or will Congress step in to protect federal investments?
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