Elon Musk’s latest privatization proposal targets two beloved federal agencies, and it’s a direct hit on Joe Biden’s legacy; here are the reasons

Billionaire Elon Musk is targeting two of the institutions held close to former US President Joe Biden; Amtrak and the US Postal Service, and has called for them to be privatized, as per a report.

Elon Musk's privatization proposal

Musk, who is advising the US President Donald Trump on reducing the size of the US government budget, said that anything that can be privatized should be privatized and pointed out that Amtrak and USPS are included in that category, according to Daily Mail.

The suggestion was made by the billionaire tech entrepreneur at a recent Morgan Stanley conference , where he said, "I think we should privatize the Post Office and Amtrak for example... We should privatize everything we possibly can," as quoted by Daily Mail. While he admitted that privatizing the agencies would need to be approved by Congress, as per the report.

Joe Biden’s strong connection to Amtrak

Meanwhile, Biden had gained a reputation for making regular Amtrak journeys between Washington and his home state of Delaware while he was in the Senate, has long been an advocate of the expansion and upgrading of rail services, as per Daily Mail. In 2024, he made a $16 billion investment to upgrade America's rail network, the report added.

Amtrak's financial struggles despite increased ridership

Amtrak was established in 1970 as a government-owned company, and over the years has experienced financial difficulties. Though Amtrak had a 15% rise in ridership last year to a record 32.8 million customer trips, as per Daily Mail. Even with the increase, however, the company recorded a large operating loss of $705 million, which led Musk to comment on its performance compared to China's high-speed rail system. Musk said "Amtrak is a sad situation... It will leave you with a very bad impression of America," as quoted by Daily Mail.

USPS struggles with financial losses but recent profit

Postal Service, another government agency, puts additional pressure on Biden's legacy. The USPS has been operating in the red for decades, losing more than $100 billion since 2007, reported Daily Mail. Yet earlier this month, the service reported a profit of $144 million in the fourth quarter.

Musk's offer to take the agency private comes after the US president Donald Trump said last month that he was considering to consolidate USPS with the Commerce Department, a step that numerous Democrats claim would breach federal law, as per Daily Mail.

FAQs

What is Elon Musk planning for Amtrak and the USPS?
Musk is calling for the privatization of two government agencies; Amtrak and the US Postal Service He claimed that any government entity that can be privatized should be privatized.

Why does Musk want to privatize these agencies?
Musk might want to privatize services like Amtrak and the USPS as it could improve efficiency and reduce government spending.