Ironically, one of the primary motivations behind the establishment of the old Federal highway system after World War I was a recognition by leaders in government that the railroads had become too powerful, and therefore the nation needed an alternative competing mode of transportation. It’s interesting that in many cities, commuter transit agencies have now become such a weak link in the transportation system.
Take note of the result: Said “leaders in government” ended up taking over the passenger rail.
One of the worst examples is the big push by New York City to take over its privately-operated subway/elevated system. First they built city-run “competing” lines (called the “Independent Subway” in a twist of open irony) and then they forced the private companies by law to hold down fares to a flat rate of 5¢ for all stops. When the city took over the private lines after bankrupting the companies that ran them, then subway line expansion stopped dead.