Amtrak CEO Stephen Gardner has announced his resignation after 16 years of leading the U.S. passenger rail service, a decision that comes amid renewed calls for privatization from the Trump administration. The resignation follows a period of record-breaking ridership for Amtrak, signaling a strong performance despite the pressure surrounding the future of the rail system.

In his resignation statement, Gardner expressed pride in the accomplishments of his team, emphasizing the improvements made to Amtrak during his tenure. “We did a lot together to make Amtrak safer, more modern, and a better travel experience for all our customers,” Gardner said. “It has been my honor and privilege to lead this great American company, and I wish Amtrak every success.” While Gardner did not provide specifics about the reasons for his departure, he suggested that the decision was made to ensure that the rail system maintains the confidence and support of the administration.

Amtrak’s challenges have been further complicated by criticism from President Donald Trump, Transportation Secretary Sean Duffy, and Tesla CEO Elon Musk, who has long advocated for the privatization of U.S. transportation services, including Amtrak. Musk, during a recent speech, remarked, “I think logically we should privatize anything that can reasonably be privatized,” which includes both the U.S. Postal Service and Amtrak. His stance has drawn criticism, with many questioning his motivations, considering his vested interest in electric vehicles as a competitor to public transport.

Amtrak has pushed back against calls for privatization, highlighting the potential downsides of such a shift. The rail service argues that a private company would face the same operational constraints as Amtrak but would lack the statutory right to operate over the national rail network, which is vital to maintaining the service across the country. Moreover, Amtrak officials note that privatization in other countries, such as the United Kingdom, has not led to improved efficiency or reduced costs and has resulted in higher prices and safety concerns.

The debate over Amtrak’s future comes at a time when the company is reporting significant successes. In fiscal year 2024, Amtrak set a new record for ridership, with a 7% increase in operating revenue, reaching $3.6 billion. Despite these accomplishments, Amtrak continues to rely on federal support to cover operational costs, raising questions about the feasibility of privatization for such a critical public service.

Amtrak’s importance to the U.S. transportation infrastructure has led to support from figures like President Joe Biden, who has allocated billions in federal funding to improve and expand the service. In contrast, the Trump administration has previously sought to reduce funding for Amtrak and other public transportation systems. Secretary Duffy has even threatened to withdraw federal funding from various transportation projects across the country, further fueling tensions over the future of U.S. rail service.

While the leadership change at Amtrak raises questions about the company’s direction, the debate over privatization is far from settled.