Elon Musk Backs Plan To Privatise USPS And Amtrak As Trump's Cost-Cutting Crusade Escalates

Elon Musk's Department of Government Efficiency (DOGE) has infiltrated several federal agencies, including the US Social Security Administration, General Services Administration, Internal Revenue Service, Department of Education, Agriculture, Treasury, and even the Office of Personnel Management.

According to the DOGE savings tracker, Musk's actions of major structural overhaul and downsizing at these agencies have led to an estimated £81.55 billion in federal savings.

Now, the DOGE chief working under US President Donald Trump plans to target the United States Postal Service (USPS) and the national passenger railroad company Amtrak. Musk reportedly said yesterday during a Morgan Stanley tech conference that 'logically, we should prioritise anything that can reasonably be privatised...We should privatise the post office and Amtrak.'

'To understand the federal government, it is like a corporate takeover at scale...but one where the company is actually in much worse shape than any commercial company could ever be,' he added.

USPS Has Been Navigating Financial Troubles

The USPS has been losing billions of dollars yearly and has witnessed a marked decline in the volumes of First-Class Mail, Marketing Mail, and packages. Its long-standing financial troubles have affected its ability to deliver mail and pay retirees their benefits.

The idea of privatising the USPS had been floated earlier to make the service more effective. Trump has signalled that he wants to privatise the government organisation, citing massive financial losses.

'There is a lot of talk about the Postal Service being taken private,' he said in December 2024. 'It's a lot different today, between Amazon and UPS and FedEx and all the things that you didn't have. But there is talk about that. It's an idea that a lot of people have liked for a long time.'

In February, another report emerged that Trump was considering an executive order to take control of the USPS, but nothing of that sort has happened yet.

Amtrak's Long-term Financial Challenges

Proposals to privatise Amtrak have also emerged in the past due to the company's persisting financial issues. The railroad service is mainly owned by the US government and depends on federal subsidies. However, it is already operating as a for-profit company.

The government organisation has posted hundreds of millions of dollars in losses year after year, which has jeopardised its ability to repay existing debts efficiently. Although Amtrak's efforts to generate more revenue and minimise operational overheads have helped navigate short-term financial challenges, its budget requests have steadily increased over time.

Supporters of Amtrak's privatisation believe the move would help it operate more efficiently and gradually resolve its financial roadblocks. However, critics have highlighted the swarm of issues that emerged when Britain privatised its passenger rail service, which resulted in heightened service lapses and unforeseen financial problems. Despite that, it continued to require significant government subsidies.

Musk has claimed massive fraud at several federal agencies and upended numerous funding programmes. However, his latest views are the first time he publicly advocated for the privatisation of government entities.