Elon Musk’s Boring Company Is in Talks With Government Over Amtrak Project

The Federal Railroad Administration (FRA), the United States’ primary railroad regulatory body, has engaged in discussions with the Boring Company, a tunneling firm founded by Elon Musk, to explore potential assistance with a major Amtrak project, as reported by three individuals familiar with the matter.

Officials from the FRA have been in talks with Boring Company representatives regarding the Frederick Douglass Tunnel project, a new tunnel intended to connect Baltimore to Washington and Virginia along a heavily trafficked Amtrak route. Initially projected to cost $6 billion, the estimated budget for the project has now surged to $8.5 billion.

During these discussions, officials from the Department of Transportation (DOT), which oversees the FRA, met with Boring Company staff last month. According to two sources familiar with the conversations, the Boring Company suggested it could potentially reduce costs and streamline construction of the tunnel.

DOT spokesperson Nathaniel Sizemore confirmed that the Boring Company is among several firms being considered for a new engineering contract related to the project. However, he declined to disclose the identities of the other firms involved.

“No decision has been made on bids,” Sizemore stated. “Amtrak, in coordination with the DOT, will adhere to standard procedures for contracting and subcontracting.”

These talks have raised concerns regarding potential conflicts of interest involving Elon Musk, who manages or owns multiple companies, including Tesla and SpaceX, while also serving as a top advisor to President Trump. Moreover, Musk has been leading the Department of Government Efficiency, which has been responsible for implementing significant budget cuts at federal agencies that oversee his companies.

Instances of potential conflicts of interest have surfaced publicly. In March, President Trump promoted Tesla vehicles on the White House lawn, and federal agencies have pushed for broader adoption of SpaceX’s Starlink satellite internet.

Last month, amid concerns from investors that he was neglecting his role at Tesla, Musk announced plans to scale back his cost-cutting efforts in Washington.

The DOT acknowledged in a statement that the Frederick Douglass Tunnel project’s cost estimate has risen by $2.5 billion, and that Amtrak has yet to identify effective cost-saving measures.

“The department has engaged in discussions with numerous stakeholders in the infrastructure-engineering sector to explore opportunities to bring the project back on track,” Sizemore said.

Amtrak and the Boring Company did not provide immediate responses to requests for comment.

The Frederick Douglass Tunnel is intended to replace the aging 152-year-old Baltimore and Potomac Tunnel, a 1.4-mile section of the Northeast Corridor. According to a report last year by Amtrak’s inspector general office, the tunnel is the largest infrastructure initiative currently led by Amtrak. The report also raised concerns about increasing costs and delayed timelines, with the project now anticipated for completion by 2035.

Last year, Amtrak awarded the construction contract to a joint venture between Kiewit and J.F. Shea, two prominent construction firms. Neither firm provided immediate comments regarding the ongoing discussions.

Several Republican figures, including Senator Ted Cruz of Texas and Vice President JD Vance, have previously criticized the allocation of federal funds for the project, arguing it disproportionately benefits Northeastern states.

Musk himself has been vocal in his criticism of Amtrak and other large-scale rail initiatives. During a banking conference in March, he suggested that Amtrak should be privatized, asserting, “If you’re visiting from another country, don’t use our national rail. It will leave you with a terrible impression of America.”

Musk and his companies have previously been involved in discussions related to the DOT. For instance, following a fatal collision between an Army helicopter and a commercial aircraft in January, Transportation Secretary Sean Duffy invited SpaceX employees to provide safety recommendations at the Federal Aviation Administration’s Air Traffic Control command center.

Musk has also been advocating for the FAA to cancel a major air traffic control contract with Verizon in favor of a Starlink-based system.

Over the years, Musk has promoted various transportation concepts, including Tesla electric vehicles, SpaceX rockets, and a proposed hyperloop system that would move passengers and cargo through vacuum tubes at high speeds. Despite raising over $900 million in venture capital, the Boring Company has completed few of its ambitious projects in the U.S.

In 2017, Musk tweeted that he had received “verbal government approval” to construct a hyperloop system connecting New York, Philadelphia, Baltimore, and Washington, with a promised travel time of under 30 minutes. In 2019, the Boring Company submitted plans to the DOT for a 35-mile underground car loop between Baltimore and Washington, claiming it could be completed in two years. That project was removed from the company’s website in 2021 and appears to have been abandoned.

The Boring Company is currently led by Steve Davis, a long-time associate of Musk. Davis was appointed to the role in 2018 and tasked with implementing Musk’s cost-cutting strategies, including initiatives under the Department of Government Efficiency. In a recent interview, Davis portrayed his work with DOGE as an effort to prevent national bankruptcy, emphasizing that he and his colleagues had put their personal lives on hold to support Musk’s vision.

Davis, however, did not respond to requests for comment.