Elon Musk Privatization Plans Spark Debate Among GOP Lawmakers

Elon Musk privatization plans dominated his Wednesday meeting with Senate Republicans. He actively pitched privatizing U.S. rail and mail services. This is reported by the railway transport news portal Railway Supply.

Elon Musk Privatization Plans for Amtrak

Musk joined a San Francisco technology conference virtually, hosted by Morgan Stanley. He sharply criticized Amtrak trains, calling them outdated compared to Europe and Asia.

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“Please avoid our national rail if you’re visiting from abroad,” Musk told attendees. He argued it creates a poor impression of America, disappointing travelers instantly.

Musk labeled Amtrak and the Postal Service as top privatization targets during the conference. He insisted privatization drives efficiency because bankruptcy risks force improvements.

“There must be a chance of failure,” Musk explained to the tech conference audience. “Without it, no real feedback loop pushes services to get better.”

Elon Musk Privatization Plans and GOP Reactions

Musk attended a private luncheon with GOP senators in the afternoon, sources confirmed. Politico and The Washington Post quickly reported on his bold suggestions.

President Donald Trump also supports privatizing the Postal Service, echoing Musk’s stance. Last month, he tasked Commerce Secretary Howard Lutnick with exploring this shift.

“We’re hemorrhaging cash with the Postal Service,” Trump told reporters firmly. “And we absolutely refuse to keep losing that much money.”

The Postal Service announced a $1.8 billion loss for fiscal year 2024 on November 14. Yet, this figure reflects a $434 million improvement over the previous year.

Pension liabilities for retirees and non-cash worker compensation adjustments fueled much of this deficit. These factors continue straining the agency’s finances, prompting urgent reform calls.

Sen. Rick Scott, a Florida Republican, verified Musk’s presence at the GOP lunch. Some senators had previously urged Musk to improve communication with lawmakers.

Scott hosts these Wednesday lunches weekly and invited Musk to address DOGE’s impact. He aimed to align cost-cutting efforts with senators’ constituent concerns.

Musk plans to meet House GOP lawmakers later Wednesday evening, expanding his outreach. Both chambers actively seek clarity on his aggressive federal downsizing strategies.

Republican lawmakers across Congress voiced worries about Musk’s mass firing approach. They noted DOGE’s cost-cutting lacks sufficient input from elected federal officials.

Constituents have flooded senators and representatives with complaints about workforce reductions. Many fear the rapid changes could disrupt services they rely on daily.

Musk’s reform agenda aims to shrink government size and boost efficiency, he claims. But lawmakers demand more coordination to ease the transition for affected communities.

Source: www.upi.com

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