It isn't regulated in ways that matter. We're down to
five Class I American freight railroads. (So we're not
quite to Klobuchar's monopoly board... just wait!) Their networks overlap even less than one might think, so there is effectively no competition. Asshole billionaires like Warren Buffett aren't even trying to provide good service, because they figure they make more money burying the organizations under mountains of debt, which is why they have paid the Biden administration to crush their union employees. Over the last several decades, rail freight charges and derailments have exploded while the amount of freight shipped has actually dropped. That's one of the main reasons we have to contend with so many semi trucks on our highways.
In many industries, commercial competitors discover when regulators have shirked their duties. In the rail industry, with no effective competition, many theoretical regulations are not actually enforced. This problem has gotten worse over time.
Your concerns about Amtrak may be valid, but they are orthogonal to the topic at hand.