The US Department of Transportation (US DOT) has announced that Amtrak will assume leadership of the Penn Station reconstruction project in New York City, replacing the Metropolitan Transportation Authority (MTA) as the lead agency.

The change, led by Transportation Secretary Sean P. Duffy, will also involve a reduction in federal funding for the project, with the government citing estimated savings of approximately 120 million USD.

According to the Federal Railroad Administration (FRA), the decision to reassign the project stems from a reassessment of project oversight and expenditure.

Rendering of the newly designed New York Penn Station entrance at 7th Avenue and 32nd Street

© Amtrak

The FRA confirmed that Amtrak, which owns Penn Station and serves more than 10 million passengers at the facility each year, will now oversee both reconstruction efforts and potential future expansion of the site.

A 72 million USD grant was originally awarded to the MTA in November 2024 under the Federal-State Partnership (FSP) Program and was designated for project development. This funding is being withdrawn and redirected, with a revised grant allocation issued to Amtrak to support its new leadership role.

In a statement, Secretary Duffy said the reassignment reflects an effort to reduce costs and improve project oversight. He also noted the administration’s intent to involve private sector partners in delivering the redevelopment through a public-private partnership model, aimed at limiting financial exposure for taxpayers.

US Transportation Secretary Sean P. Duffy said:

President Trump has made it clear: the days of reckless spending and blank checks are over. 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.

No timeline for the revised project delivery has yet been publicly announced.

MTA Chair and CEO Janno Lieber has responded to the announcement following the receipt of a letter from USDOT.

MTA Chair and CEO Janno Lieber said:

Governor Kathy Hochul has prioritised the reconstruction of Penn Station for years, and we’re glad the federal government is focusing on it now. 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.

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