Sources familiar with the matter revealed that the Federal Railroad Administration (FRA) has approached a tunneling firm established by Elon Musk.

FRA officials engaged with employees from the Boring Company to discuss cost assessments and progress related to the Frederick Douglass Tunnel Program, a new tunnel intended to enhance the heavily trafficked Amtrak route linking Baltimore and Virginia. Amtrak’s initial development cost was projected at $6 billion, but estimates have now surged to $8.5 billion.

During discussions, a Department of Transportation official who oversees the FRA met with Boring Company staff last month, learning that the firm might pinpoint ways to construct tunnels more affordably and efficiently, according to two insiders.

Nathaniel Sizemore, a spokesperson for the Department of Transportation, confirmed the involvement of the Boring Company among various entities under consideration for a new engineering contract, but he withheld the names of other firms.

These discussions have sparked concerns regarding Musk’s potential conflict of interest as he manages his business interests while simultaneously advising President Trump. Musk oversees at least six companies, including the electric car manufacturer Tesla and the aerospace company SpaceX, while also aiming to boost the efficiency of government operations, which has resulted in reduced employment and resources within federal agencies regulating his ventures.

In various instances, conflicts of interest have surfaced. Trump showcased a Tesla on the White House lawn in March, even as federal agencies push for broader adoption of SpaceX’s Starlink Satellite Internet Service.

Last month, Musk mentioned reducing his time in Washington amid criticisms that he was sidelining his responsibilities at Tesla.

The projected tunnel cost has skyrocketed by $2.5 billion, and Amtrak has yet to devise strategies for cost containment, the Department of Transportation indicated in a statement.

“The department recognizes the significance of engaging with multiple stakeholders in the infrastructure engineering domain to realign the project,” Sizemore stated.

Amtrak has not provided immediate comments. Neither the Boring Company nor Musk responded to inquiries for statements.

The Frederick Douglass Tunnel is intended to replace the 152-year-old Baltimore and Potomac Tunnels, a 1.4-mile stretch along Amtrak’s northeastern corridor, described as “the largest infrastructure initiative” supported by Amtrak. Report In the past year, Amtrak’s Office of the General Inspectors also expressed concerns that costs had ballooned and deadlines were not met, with the tunnel originally scheduled for completion by 2035.

Amtrak awarded last year the construction contract to a joint venture between two firms, Kiewit and JF Shea. The company did not immediately provide comments.

Formerly, it faced ownership scrutiny from Republican figures, including Senator Ted Cruz from Texas and current Vice President JD Vance. Criticism arose for awarding federal funding to projects favoring “Northeastern states over others.”

Musk has previously criticized Amtrak and suggested prioritizing privatization of federally-owned railways.

“If you’re from another country, do not rely on our national railway,” Musk remarked about Amtrak during a March discussion with bankers. “It leaves a negative impression of America.”

Musk and his company have encountered challenges with the Department of Transportation. Following a deadly incident involving an Army helicopter and a commercial jet in January, Transportation Secretary Shawn Duffy noted that SpaceX staff would forward safety proposals to the Federal Aviation Administration’s Air Traffic Control Command Center in Virginia within the following month.

Musk is advocating for the FAA to terminate its substantial air traffic control agreement with Verizon in favor of the Starlink system.

Throughout the years, Musk has championed various transportation innovations, from Tesla electric vehicles to SpaceX rockets, hyperloops, and vacuum tubes designed for high-speed transit of people and goods. The Boring Company, which has raised over $900 million in venture capital, has yet to realize most of its proposed plans in the U.S.

In a 2017 tweet, Musk claimed he would transport passengers from New York to the capital in 30 minutes, stating he had secured “oral government approval” to construct an underground hyperloop connecting New York City, Philadelphia, Baltimore, and Washington.

Two years later, the Boring Company proposed a plan to the Department of Transportation to create a 35-mile underground vehicle loop between Baltimore and Washington, promising completion within two years. However, by 2021, the project was removed from the company’s site and appears inactive now.

Steve Davis, the leader of the Boring Company, has collaborated with Musk and the Trump administration on initiatives aimed at enhancing government efficiency. Davis, a trusted associate of Musk’s, was appointed to helm the tunneling firm in 2018 to execute Musk’s vision for cost-effective governance.

Musk has expressed dissatisfaction with the Boring Company’s performance, criticizing Davis for the lack of project completions. In a recent Fox News interview, Davis characterized his attempts as efforts to avert national bankruptcy, emphasizing a commitment to assist Musk.

Davis did not respond to a request for commentary.

Research contributed by Alain Delacheriere.