Amtrak OIG identifies top management challenges for next two fiscal years
The Amtrak Office of Inspector General's (OIG) latest report detailed Amtrak's top management and performance challenges for fiscal years (FY) 2026 and 2027. The report says there are five main challenges Amtrak will have to face during the next two FYs:
- Safety and security: Maintaining focus on longstanding risks.
- Capital investment: Responsibly executing historic capital plans.
- Financial management: Demonstrating fiscal stewardship.
- Customer service: Ensuring a consistent, high quality customer experience.
- Technology: Modernizing technology and reducing cybersecurity risks.
Safety and security
According to the report, Amtrak experienced a series of derailments from 2015 through 2016 that were the basis of National Transportation Safety Board 2017 assessment. Since then, the company has instituted various initiatives intended to mitigate risks, including implementing its safety management system ahead of the March 2021 regulatory deadline and elevating its Safety and Security department to an executive function that reports directly to the company’s president. The company has also implemented Positive Train Control over most of its network.
One of the focuses of the report is to protect passengers at stations and on-board trains. The report notes on-board employees are trained to identify terrorism threats, de-escalate conflict and identify human trafficking.
Capital investment
The report flags three focus areas Amtrak needs to address when it comes to capital investments:
- Rolling stock: Amtrak is undertaking the three largest rolling stock acquisitions in its history—including the approximately $1.5 billion NextGen Acela program, the roughly $3.6 billion Airo program and a multi-billion-dollar long distance fleet replacement effort. According to the report, NextGen Acela suffered a four-year Federal Railroad Administration safety-approval delay and has had ongoing quality issues since entering revenue service. The long-distance procurement was rebid and delayed over two years due to unrealistic designs.
- Building new assets: Amtrak has nearly 500 capital projects in the pipeline, including the $2.7 billion Susquehanna River Bridge replacement and the Penn Station transformation. The report notes early planning deficiencies were found in Gateway Hudson Tunnel Project (HTP), the Portal North Bridge and the Baltimore and Potomac Tunnel.
- Aging infrastructure and labor shortages: According to the report, Amtrak needs better governance and data frameworks to reduce its maintenance backlog, particularly on the Northeast Corridor.
The report notes stakeholder coordination has been an issue on projects, including the HTP cost dispute, an ongoing dispute with the Metropolitan Transportation Authority over operating Amtrak equipment on Metro-North lines, ADA compliance coordination difficulties and internal stakeholder engagement gaps that have caused infrastructure project delays.
An OIG report published in July 2025 found that Amtrak has opportunities to better ensure contracts that it awards are in its best interest. The report examined the pre-award phase of Amtrak’s procurement process and found that certain contracting activities generally worked well—but it also identified areas where weaknesses place the company at greater risk of paying more than it should for goods and services.
During construction of the Portal North Bridge in May 2024, Amtrak OIG issued a report that noted the company had opportunities to improve its support of New Jersey Transit and better oversee its own interests and reduce risks to the project.
Financial management
According to the report, Amtrak's adjusted operating loss shrank from a peak of $1.08 billion in FY21 down to $598.4 million in FY25, with $460.6 million planned for FY26.
The report identifies four key issues when it comes to the company's finances:
- Achieving financial stability: Amtrak has set a goal of operational profitability by the end of FY28.
- Practicing sound contract management: The report notes Amtrak has approximately $7 billion in planned FY26 capital spending flowing to contractors. According to the report, the company hasn't consistently followed its own procurement standards, limiting its ability to judge if bids are fair. Post-award oversight of the cost, schedule and performance of projects has also been inconsistent.
- Complying with new/expanded funding requirements: The report notes the Infrastructure Investment and Jobs Act added multiple new funding/reporting streams on top of the traditional annual grant, forcing Amtrak to amend contracts on discretionary grant-funded projects due to omitted or incorrect contract terms.
- Combating fraud risk: The report notes that since FY22, the OIG has investigated 75-plus fraud cases. Amtrak has set up a fraud-monitoring office and training, but hasn't implemented all prior OIG recommendations, especially on health care fraud.
Customer service
The report notes Amtrak needs to improve its on-time performance and service delivery, as long-distance on-time performance dropped from 57% in FY24 to 53% in FY25. State-supported and NEC routes have also trended down since FY21.
According to the report, Amtrak needs to begin upgrading its aging fleet, minimize capital work disruptions and improve freight railroad relationships.
Amtrak now splits satisfaction scores between on-time and delayed customers to isolate controllable factors, including staff interactions, cleanliness and Wi-Fi reliability. Amtrak is working to sync communication channels and is piloting real-time customer service interventions, but in the first seven months of FY26, delayed customers' satisfaction with status communications averaged just 68%.
The report notes that only 163 of 382 Amtrak stations, or 43%, are ADA compliant. The company aims to make all stations accessible by 2029.
Technology
The report details Amtrak is replacing/upgrading enterprise asset management, financial management, project management and timekeeping systems. The report says Amtrak has adopted an artificial intelligence policy and is reviewing its impact.
About the Author
Brandon Lewis
Associate Editor
Brandon Lewis is a recent graduate of Kent State University with a bachelor’s degree in journalism. Lewis is a former freelance editorial assistant at Vehicle Service Pros in Endeavor Business Media’s Vehicle Repair Group. Lewis brings his knowledge of web managing, copyediting and SEO practices to Mass Transit magazine as an associate editor. He is also a co-host of the Infrastructure Technology Podcast.

