The Trump administration announced a significant change in Amtrak’s bonus structure, redirecting funds previously slated for executive payouts to deliver $900 holiday bonuses to more than 18,000 frontline Amtrak workers. Transportation Secretary Sean P. Duffy and President Trump framed the move as putting hardworking Americans first and rewarding the backbone of the nation’s passenger rail service.
The U.S. Department of Transportation (DOT) worked with Amtrak’s management and board of directors to reallocate roughly half of the executive bonus pool toward bonuses for rank-and-file employees. This shift followed criticism of “exorbitant payouts” under prior bonus structures and comes during a year when Amtrak reported record ridership and revenue.
Transportation Secretary Duffy highlighted the administration’s focus on “delivering bigger paychecks to American workers,” emphasizing the importance of frontline personnel who keep trains running safely and efficiently. Through the agreement, Amtrak executives agreed to forgo 50 % of their year-end incentive bonuses, and long-term incentive bonuses for senior leadership were also eliminated.
Unions representing Amtrak workers welcomed the bonuses as overdue recognition of employees who directly serve passengers and maintain daily operations. Mark Wallace, president of the Brotherhood of Locomotive Engineers and Trainmen, noted that end-of-year bonuses will now reach workers rather than being concentrated at the executive level.
SMART-TD President Jeremy Ferguson praised the administration’s support for prioritizing workers who keep the system moving, especially during the holiday season. The restructured bonus system marks a departure from previous years when executive leadership received larger incentive payouts, even amid operational challenges.
Republican lawmakers also endorsed the decision. Statements from Transportation and Infrastructure Committee leaders Sam Graves (R-MO) and Daniel Webster (R-FL) applauded President Trump for restoring accountability and fiscal responsibility at Amtrak by redirecting bonus funds to the workforce that actually runs the nation’s trains.
The bonus announcement comes on the heels of Amtrak’s most successful year in decades, with tens of millions of riders and billions in revenue reported. Supporters argue that rewarding frontline workers for this performance reinforces the value of merit and dedication over executive compensation.
Critics of executive bonus practices have long warned that generous payouts for leadership can appear disconnected from the day-to-day contributions of unionized employees and the public funds that support Amtrak’s operations. By cutting executive incentives and expanding rewards for essential workers, the Trump administration aims to reset priorities and bolster morale among the rail workforce.
This policy shift aligns with the administration’s broader agenda to elevate American workers and ensure federal oversight reflects accountability and fairness in compensation — especially when taxpayer dollars underwrite significant portions of national transportation infrastructure.
