Authored by Tom Ozimek via The Epoch Times,
Elon Musk, who is advising President Donald Trump on reducing government waste and downsizing the federal workforce, has called for privatizing the U.S. Postal Service (USPS) and passenger rail operator Amtrak.
“I think logically, we should privatize anything that can reasonably be privatized,” Musk said at a March 5 Morgan Stanley conference.
“I think we should privatize the Post Office and Amtrak for example.”
Amtrak, a government-owned company created in 1970, reported an adjusted operating loss of $705 million in the prior fiscal year.
USPS, also government-owned, has accumulated over $100 billion in losses since 2007, including $9.5 billion in the 12 months ending Sept. 30, 2024.
Neither Amtrak nor USPS responded to requests for comment on Musk’s remarks by publication time.
The National Association of Letter Carriers (NALC) voiced opposition to Musk’s idea of privatizing USPS, emphasizing the service’s public mission.
“A friendly reminder on behalf of every American who depends on USPS (including 51.5 million rural addresses): It’s called universal service, not ‘as much as possible’ service,” NALC wrote in a post on X. “And we’ll #FightLikeHell to protect it.”
Trump has previously suggested that the USPS could be privatized, a move that would allow for more flexibility in pricing and labor negotiations.
During Trump’s first term, his administration proposed a restructuring plan for USPS, citing “extremely high” fixed costs and an inability to support its financial obligations. The plan highlighted over $100 billion in unfunded liabilities, a decade of consecutive losses, and a growing capital investment backlog.
“A privatized Postal Service would have a substantially lower cost structure, be able to adapt to changing customer needs and make business decisions free from political interference, and have access to private capital markets to fund operational improvements without burdening taxpayers,” the proposal stated.
Last month, Trump said he was considering merging USPS with the Commerce Department, a move that Democrats said would violate federal law.
Calling USPS “a tremendous loser for the country,” Trump said the objective of such a move would be to have a “post office that works well and doesn’t lose massive amounts of money.”
Democrats have consistently opposed privatization efforts, warning that changes to USPS operations could disproportionately impact rural communities and those dependent on postal services for essential goods and medication.
Trump has also repeatedly pushed to cut Amtrak’s federal funding, which totaled approximately $2.4 billion last year. His past budget proposals sought to reduce Amtrak’s funding by 40–50 percent and eliminate long-distance routes, arguing that resources should be redirected to higher-traffic corridors.
Musk, comparing U.S. rail service to China’s high-speed system, criticized Amtrak as a “sad situation,” saying, “It will leave you with a very bad impression of America.”
Authored by Tom Ozimek via The Epoch Times,
Elon Musk, who is advising President Donald Trump on reducing government waste and downsizing the federal workforce, has called for privatizing the U.S. Postal Service (USPS) and passenger rail operator Amtrak.
“I think logically, we should privatize anything that can reasonably be privatized,” Musk said at a March 5 Morgan Stanley conference.
“I think we should privatize the Post Office and Amtrak for example.”
Amtrak, a government-owned company created in 1970, reported an adjusted operating loss of $705 million in the prior fiscal year.
USPS, also government-owned, has accumulated over $100 billion in losses since 2007, including $9.5 billion in the 12 months ending Sept. 30, 2024.
Neither Amtrak nor USPS responded to requests for comment on Musk’s remarks by publication time.
The National Association of Letter Carriers (NALC) voiced opposition to Musk’s idea of privatizing USPS, emphasizing the service’s public mission.
“A friendly reminder on behalf of every American who depends on USPS (including 51.5 million rural addresses): It’s called universal service, not ‘as much as possible’ service,” NALC wrote in a post on X. “And we’ll #FightLikeHell to protect it.”
Trump has previously suggested that the USPS could be privatized, a move that would allow for more flexibility in pricing and labor negotiations.
During Trump’s first term, his administration proposed a restructuring plan for USPS, citing “extremely high” fixed costs and an inability to support its financial obligations. The plan highlighted over $100 billion in unfunded liabilities, a decade of consecutive losses, and a growing capital investment backlog.
“A privatized Postal Service would have a substantially lower cost structure, be able to adapt to changing customer needs and make business decisions free from political interference, and have access to private capital markets to fund operational improvements without burdening taxpayers,” the proposal stated.
Last month, Trump said he was considering merging USPS with the Commerce Department, a move that Democrats said would violate federal law.
Calling USPS “a tremendous loser for the country,” Trump said the objective of such a move would be to have a “post office that works well and doesn’t lose massive amounts of money.”
Democrats have consistently opposed privatization efforts, warning that changes to USPS operations could disproportionately impact rural communities and those dependent on postal services for essential goods and medication.
Trump has also repeatedly pushed to cut Amtrak’s federal funding, which totaled approximately $2.4 billion last year. His past budget proposals sought to reduce Amtrak’s funding by 40–50 percent and eliminate long-distance routes, arguing that resources should be redirected to higher-traffic corridors.
Musk, comparing U.S. rail service to China’s high-speed system, criticized Amtrak as a “sad situation,” saying, “It will leave you with a very bad impression of America.”
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