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The federal government is exploring new ways to rein in costs on one of Amtrak's biggest infrastructure projects, Elon Musk's tunneling venture. The Boring Company is now in talks with transportation officials to potentially take over or advise on the troubled Frederick Douglass Tunnel between Baltimore and Washington. The Frederick Douglass Tunnel was originally expected to cost $6 billion. Today, the government believes it could balloon to $8.5 billion before it's finished.
That increase has alarmed the Department of Transportation and Amtrak leadership, who have failed to find ways to lower costs after years of planning. This failure led the Federal Railroad Administration FRA to bring in the Boring Company for discussions. Last month, officials from the agency met directly with Musk's employees to explore alternative
tunnel construction methods. The project is meant to replace the one or 52 year old Baltimore and Potomac Tunnel, a choke point along the busy Amtrak corridor connecting the Northeast. As the single largest infrastructure effort in Amtrak's history, the tunnel spans just 1.4 miles but is crucial to connecting Baltimore with Washington DC and points southward. Delays in that stretch slow down the entire Amtrak NE corridor, which serves millions of riders annually.
The Boring Company claimed during talks that it could execute the tunnel faster and cheaper than current contractors. These promises appealed to dot leaders who are trying to bring the project back within its budget. Musk's firm has long pitched itself as a low cost tech forward tunneling operation that can outperform traditional builders. The existing contractor is a joint venture between Kewitt and JF Shea, 2 massive infrastructure companies with
decades of experience. Amtrak awarded them the job in 2023, but the work has progressed slower than expected. The companies did not issue any public response to news of the Boring Company's involvement. Federal officials have not yet finalized any new engineering contracts. The Boring Company is one of several being evaluated, according to the Department of Transportation.
Nathaniel Sizemore, a spokesman for the department, confirmed these consultations and said they are part of a broader strategy to find cost saving opportunities. Elon Musk's growing proximity to federal infrastructure planning has raised questions about conflicts of interest. Musk leads six companies, including Tesla, SpaceX, Neurolink, XAI, Twitter X and the Boring Company.
He also chairs the Department of Government Efficiency DIOG, an informal advisory group formed under the Trump administration to cut federal spending. Musk's influence over government decisions has already triggered scrutiny. In March, President Trump featured Tesla cars on the White House lawn as part of a push for electric vehicle adoption.
Around the same time, federal officials advocated for broader deployment of Starlink, Musk's satellite Internet venture under SpaceX, in government operations. Musk has also publicly criticized Amtrak, calling it inefficient and suggesting that it be privatized. At a bankers conference in March, he warned foreign visitors not to use the US rail service because it would give them a negative impression of America.
This speech came just weeks before the Department of Transportation met with his tunneling company. In a separate effort, Musk pushed the FAA to cancel a multibillion dollar contract with Verizon for air traffic control upgrades. He argued that Starlink could provide a better alternative. Shortly after a January crash involving an Army helicopter and a commercial plane, SpaceX employees were brought into FAA's air traffic headquarters to consult on safety improvements.
Musk has made similar promises before. In 2017, he claimed on Twitter that he had verbal government approval to build a Hyperloop between New York, Philadelphia, Baltimore and Washington, Washington. He said it would move passengers between New York and DC in under
30 minutes. That project never advanced past early paperwork and vanished from his company's websites by 2021. The Boring Company also once proposed a 35 mile underground car tunnel between Baltimore and Washington. Musk's team claimed it could complete that work in two years. That proposal also disappeared, with no updates or construction ever occurring. The company's leader, Steve Davis, has worked closely with Musk to implement the cost cutting directives at DOGE.
Davis has no background in transportation engineering but has long been part of Musk SCORE team. Musk named him CEO of The Boring Company in 2018 and tasked him with accelerating progress on the company's stalled projects. Musk has grown frustrated with Davis's lack of results, according to people familiar with internal discussions.
Although Davis has defended his efforts, saying his government work is driven by a desire to reduce waste, critics argue that he lacks the technical experience to lead national scale transportation efforts. He declined to comment for this story. The cost overrun on the Frederick Douglass Tunnel has triggered national attention.
Republican lawmakers, including Senator Ted Cruz and Vice President JD Vance, have accused the government of directing disproportionate funds toward northeastern infrastructure. They argue that southern and western states receive far less support for their transportation needs. The tunnel itself remains A vital component of national travel. Thousands of trains run through the existing structure each year. Despite the tunnels outdated design and poor condition.
Engineers have warned for years that its failure could lead to major service disruptions from Boston to Virginia. Despite the Boring Company's lack of completed US projects, it's low cost tunneling methods continue to attract interest. The company raised over $900 million in venture capital and completed a short tunnel under the Las Vegas Convention Center, but failed to scale that model elsewhere.
Its other proposals, including citywide systems in Chicago and Los Angeles, stalled or disappeared entirely. This renewed interest in Musk's tunneling company comes at a moment when federal infrastructure projects are under enormous pressure. Inflation and labor shortages have driven up costs nationwide. Rail and Hwy. projects across the country face delays, redesigns or cancellations.
Due to funding constraints, the Department of Transportation has not committed to awarding any new contracts to Musk's firm. It is still reviewing the results of its consultations with The Boring Company and other engineers. Any future agreements would require approval from Amtrak and likely congressional oversight, given the size of the federal investment. The Frederick Douglass Tunnel is currently projected to finish by 2035.
That timeline could change if new contractors are brought in or if major engineering decisions are reversed. For now, Amtrak continues with the current plan while federal officials consider alternatives. The growing overlap between Musk's companies and federal infrastructure is already reshaping policy decisions. Whether or not the Boring Company takes over the Frederick Douglass Tunnel, Musk's influence on the direction and cost of American transportation
is expanding. As his business has become more embedded in federal decisions, the separation between private innovation and public service continues to shrink. The government is weighing whether Elon Musk's tunnel company can save billions on a failing Amtrak project or whether it adds more risks than rewards. I want to say thank you so much for tuning into the show today.
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