U.S. Department of Transportation Secretary Sean Duffy stripped control of the Penn Station Reconstruction project in New York City, handing it over to Amtrak instead.
Duffy said the Federal Railroad Administration (FRA) will also be rescoping and slashing the federal grant to Amtrak for the project’s development, saying it will save taxpayers an estimated $120 million. Duffy said the transfer would still ensure a “safe, modern, and efficient transit hub for the nation’s financial capital.” The Trump administration determined that since Amtrak owns the station, it could work with the administration to oversee the project.
“President Trump has made it clear: the days of reckless spending and blank checks are over,” Duffy said. “New York City deserves a Penn Station that reflects America’s greatness and is safe and clean. 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.”
MTA was awarded a $72 million Federal-State Partnership for Intercity Passenger Rail (FSP) program grant in November 2024. The grant was intended only for project development related to station reconstruction. With a reduced allocation being awarded to Amtrak, the railroad company can look for a master developer to investigate both reconstruction and potential expansion of the station, the FRA said.
MTA said it expects to be part of future development activities.
“Governor Kathy Hochul has prioritized the reconstruction of Penn Station for years, and we’re glad the federal government is focusing on it now,” MTA Chair and CEO Janno Lieber said. “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.”
Duffy said the department would also be championing a public-private partnership model for the station. The department believes the approach will reduce costs, drive efficiencies and deliver faster results.
“Under President Trump’s vision, we’re restoring accountability to infrastructure projects,” FRA Chief Counsel Kyle Fields. “By empowering Amtrak and leveraging private investment, we’re guaranteeing a Penn Station that’s safer, more reliable, and built to serve the American people for generations.”