Musk backs privatizing 2 major gov’t-run entities draining taxpayer cash

While speaking virtually at a Morgan Stanley Technology Media & Telecom conference on Wednesday, Elon Musk called for the privatization of the United States Postal Service, Amtrak, and other government-controlled entities.

"I think we should privatize the Post Office and Amtrak, for example," Musk declared.

'Something's got to have some chance of going bankrupt.'

Compared to national rail systems in other countries, such as China, Musk called Amtrak "kind of embarrassing" and a "sad situation" for the U.S.

"It's like, if you're coming from another country, please don't use our national rail. It can leave you with a very bad impression of America," he stated.

Musk said he would support privatizing the USPS, Amtrak, and "anything that can be privatized." However, he noted that such changes would require congressional action.

He explained that privatization creates "a feedback loop for improvement" that does not exist when an entity is funded by taxpayer dollars and not allowed to fail.

"Basically something's got to have some chance of going bankrupt, or there's not a good feedback loop for improvement," Musk stated.

Both USPS and Amtrak have become notorious money pits for American taxpayers.

Last month, USPS workers picketed after President Donald Trump stated that he wanted to find a way to make the mail agency profitable. He floated the idea of placing the USPS under the control of the Commerce Department, headed by Howard Lutnick.

The Washington Post previously reported that Trump planned to privatize the mail agency via executive order, but the administration has denied that any such action is currently underway.

The National Association of Letter Carriers organized a rally in Washington, D.C., in late February to protest the rumored executive action despite the White House's denials.

"Today, NALC held an event on Capitol grounds to send a clear message to the White House: Hell no to dismantling the Postal Service!" the union declared.

The union called the USPS a "self-sufficient agency," breezing past the fact that the mail agency has generated billions of dollars in annual losses for American taxpayers, including $9.5 billion in fiscal year 2024 — even after receiving a $107 billion congressional bailout two years prior.

Amtrak has a similar history as a fiscal taxpayer burden. The rail company was formed in 1971 and has never turned a profit. Taxpayer funds have kept it afloat to the tune of roughly $1 billion per year, not including the Biden administration's $66 billion investment to improve the nation's rail system.

Amtrak told Reuters that its "business performance is strong."

"Ridership and revenue are at all-time highs. ... The train service we operate across our nationwide network, as mandated by law, is on-track to reach operational profitability — for the first time in history — during this administration," Amtrak said.

The USPS declined Reuters' request for comment.

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