The Federal Railroad Administration (FRA) is reportedly negotiating with the tunnel boring corporation founded by Elon Musk for an Amtrak tunnel construction project worth several billion dollars. This project involves the construction of the Frederick Douglass Tunnel, which will replace the existing 152-year-old tunnel located in the congested area between Baltimore and Washington, D.C.
According to The New York Times (NYT) on the 12th (local time), the National Railroad Passenger Corporation (Amtrak) initially estimated the budget for this project at $6 billion but now expects it to rise to as much as $8.5 billion. Consequently, the Department of Transportation is exploring ways to reduce tunnel construction expenses and is negotiating with several private corporations, including the boring company. The Department of Transportation stated it is "reviewing opportunities to steer the project back in the right direction."
Musk is currently leading several corporations, including Tesla and SpaceX, while simultaneously overseeing the Department of Government Efficiency (DOGE), which promotes personnel and budget cuts at federal regulatory agencies, raising concerns about conflicts of interest. In fact, President Trump directly promoted Tesla vehicles from the White House, and the government is pursuing the expansion of SpaceX's Starlink.
Maintaining a critical view of the existing rail infrastructure, Musk asserts that the federal government should privatize Amtrak, suggesting that the U.S. rail system could leave a negative impression on foreign visitors. Amid this criticism, Musk has proposed alternative modes of transportation, such as the Hyperloop and underground circulatory roads, through the boring company, but most projects have been stalled without significant results since 2017.
Currently, Amtrak is advancing construction under contracts with existing contractors Kiewit and JF Shea. However, due to budget overruns and delays, the government is examining alternative options, and attention is being focused on whether Musk's boring company can seize this opportunity for a resurgence.