Penn Station 33rd Street entrance. Photo courtesy of D. Benjamin Miller on Wikimedia Commons
President Donald Trump’s administration said it was taking over the reconstruction of Penn Station from the Metropolitan Transportation Authority and Gov. Kathy Hochul. In a statement released on Thursday, Department of Transportation Secretary Sean Duffy announced that Amtrak, which owns Penn Station, would spearhead the overhaul instead of the state agency.
The move means the MTA’s plan to replace Penn Station with a 250,000-square-foot, single-level facility centered around a large light-filled train hall likely won’t move forward.
In a letter addressed to MTA CEO Janno Lieber, Duffy said the Federal Railroad Administration was rescinding a previously awarded federal grant for the project. The agency said this would save taxpayers $120 million.
“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.”
The plan to renovate the cramped transit hub has been in the works for many years, but progress has been slow. High interest rates and post-COVID office leasing problems forced Hochul to give up part of the proposal that would have built office towers around the area in exchange for funding the project in 2023.
According to U.S. DOT, the Trump Administration is advocating for a public-private partnership model for Penn Station, “harnessing private sector innovation and capital to minimize financial risk to taxpayers.”
It’s unclear what the Trump administration supports in terms of redesigning Penn. Last month, a private developer released the “Grand Penn” plan, which would create a public space the size of Bryant Park and a commuter train hall inspired by the original station, while relocating Madison Square Garden across the street. Other stalled proposals include one from the MTA and another from a private developer.
The Penn Station reconstruction project takeover from the federal government comes as the Trump administration attempts to stop the MTA’s congestion pricing program from continuing. The fate of the program is now being played out in court.
In a statement Thursday, Hochul praised the Trump administration for taking over the project and said she will be pulling the $1.3 billion in state funding allocated for the project.
“In multiple meetings with President Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station,” Hochul said. “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.”
“This is a major victory for New Yorkers, and the use of federal funds will save New York taxpayers $1.3 billion dollars that would have otherwise been necessary for this project.”
This is a developing story and will be updated.
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