Elon Musk, the billionaire entrepreneur advising President Donald Trump on plans to reduce the size of the U.S. government, has proposed privatizing both the U.S. Postal Service (USPS) and Amtrak, the U.S. national passenger rail service.
Speaking at a Morgan Stanley conference, Musk argued that any government service that can be privatized should be, naming the postal service and national rail as prime examples.
His remarks come after President Trump suggested merging the USPS with the U.S. Commerce Department, a move that Democrats have criticized as potentially illegal. Musk acknowledged that such privatization would require congressional approval.
The USPS has faced ongoing financial challenges, having lost over $100 billion since 2007, with a $9.5 billion deficit for the year ending in September. However, the service recently reported a quarterly profit of $144 million.
Despite this, the USPS has seen a dramatic decline in first-class mail volume, dropping by 80% since 1997.
Musk also criticized Amtrak, comparing it unfavorably to China’s high-speed rail, calling the U.S. rail system “a sad situation.” While Amtrak has been performing well in terms of ridership, reaching a record 32.8 million trips in 2024, it still reported an operating loss of $705 million for the year ending in September.
In response, Amtrak emphasized its strong business performance, citing record ridership and revenue levels and its goal of achieving operational profitability under the current administration.
