Stephen Gardner's role as Amtrak's chief executive faces an unexpected turn amid mounting pressure from the Trump administration.
According to Reuters, the White House compelled Gardner to resign as CEO of the U.S. passenger railroad, ending his four-year tenure at the helm of the national rail service provider.
Gardner announced his immediate resignation, emphasizing the importance of maintaining strong support from the current administration. The abrupt leadership change comes as Amtrak grapples with various challenges, including safety concerns at Washington's Union Station and calls for privatization from influential figures close to President Trump.
Transportation Secretary Sean Duffy highlighted the pressing need to address safety issues at Union Station, particularly focusing on homelessness and crime prevention. The administration's stance reflects a broader push for enhanced security measures across the nation's transportation infrastructure.
Elon Musk, serving as an advisor to Trump on government downsizing initiatives, has advocated for Amtrak's privatization. This suggestion aligns with the administration's previous attempts to reduce federal funding for the railroad service.
The federal government allocated $2.42 billion to Amtrak for operations through September 30, maintaining similar support levels from previous years. This comes despite Trump's earlier efforts during his first term to decrease the railroad's federal backing.
Amtrak achieved significant milestones in 2024, surpassing pre-pandemic ridership levels for the first time. The railroad reported 32.8 million customer trips, marking a 15% increase from the previous year.
Passenger revenue reached $2.5 billion, showing a 9% growth compared to the prior year. However, the company still faced an adjusted operating loss of $705 million for the fiscal year ending September 2024.
Service disruptions have plagued the railroad, including a complete suspension of trains between New York and Washington due to Philadelphia's power infrastructure problems in November.
The railroad's ambitious goal to double nationwide ridership to 66 million passengers by 2040 builds on substantial government investment. This includes $66 billion in congressional funding for rail projects from the 2021 infrastructure bill.
Previous infrastructure initiatives included $16.4 billion in grants announced by then-President Biden for 25 rail projects along the Northeast Corridor. This crucial route, serving 800,000 daily travelers, represents 20% of the U.S. economy. The Northeast Corridor's aging infrastructure, particularly the vital tunnel connecting New York City and New Jersey, requires significant upgrades and repairs to maintain service reliability.
Stephen Gardner's departure from Amtrak's leadership position came following White House pressure to step down as CEO. The move reflects the administration's concerns about the railroad's operations, particularly regarding safety and infrastructure maintenance at major transportation hubs like Union Station. Gardner said:
I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration It's time for Amtrak leadership to clean up Union Station. It's time to rid our nation's treasures of homelessness and crime. Commuters and travelers need to feel safe in our capital.
Gardner's resignation and the White House's intervention signal potential changes in Amtrak's management approach. The transition occurs as the railroad service provider balances record-breaking ridership achievements with ongoing operational challenges and ambitious expansion goals.
