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4/21/2025
The Trump administration late last week announced that it is taking over the $7 billion New York Penn Station reconstruction project and that Amtrak — not the Metropolitan Transportation Authority (MTA) — will lead the effort.
U.S. Transportation Secretary Sean Duffy said the Federal Railroad Administration has removed MTA as the head of the project and is putting Amtrak in the lead. As part of the shift, the FRA is also "rescoping and slashing" Amtrak's federal grant, awarded under the Biden administration, for the project. That action will save taxpayers about $120 million while still ensuring a modern and efficient station when the project is completed, according to a U.S. Department of Transportation press release.
Amtrak owns and uses the station for long-distance trains; MTA Long Island Railroad and New Jersey Transit trains also use the station. MTA has plans to create an extension of MTA Metro-North Railroad's New Haven Line to reach the station.
The Trump administration determined that USDOT and Amtrak can together deliver a world-class Penn Station since Amtrak owns it, USDOT officials said in a press release.
"New York City deserves a Penn Station that reflects America’s greatness and is safe and clean," Duffy said in the press release. "The MTA’s history of inefficiency, waste and mismanagement also meant that a new approach is needed. By putting taxpayers first, we’re ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in.”
Moreover, the Trump administration is calling for a public-private partnership model for the station to harness "private-sector innovation and capital to minimize financial risk to taxpayers," the press release stated.
New York Gov. Kathy Hochul said in a prepared statement that the Trump administration's decision is a "major victory" because the use of federal funds will save New York taxpayers $1.3 billion.
"In multiple meetings with President Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station. Clearly that effort has been successful, and I want to thank the president and Secretary Duffy for taking on the sole responsibility to deliver the beautiful new $7 billion station that New Yorkers deserve," Hochul said.
MTA Chairman and CEO Janno Lieber said in a prepared statement that Hochul has prioritized the station's reconstruction for years and "we're glad the federal government is focusing on it now."
Lieber added: "The MTA’s 33rd Street Concourse project was the first major improvement to Penn Station in decades – and we finished it on time and under budget. Over a hundred million MTA customers – two-thirds of Penn Station’s total ridership – use the facility every year. As the major leaseholder in the station, we expect to participate in the administration’s and Amtrak’s efforts to ensure future plans meet the needs of everyone who uses it.”
Amtrak has not responded to a request for comment.
Click on the links to read the FRA's letters to Amtrak and the MTA announcing the changes to the Penn Station reconstruction project and Amtrak's grant.