US secretary of transportation, Sean Duffy, has confirmed that the Trump administration has ousted New York’s Metropolitan Transportation Authority (MTA) from leading the Penn Station Reconstruction project in New York City. Amtrak, backed by the US Department of Transportation (USDOT), will instead spearhead the proposed $US 7bn overhaul of the station, the busiest in the western hemisphere.
USDOT argues that since Amtrak owns the station, which is also served by MTA’s Long Island Railroad and New Jersey Transit, there is no reason to delegate leadership of the project. It also confirmed that $US 72m in Federal-State Partnership (FSP) grant funding allocated to MTA to support project development in November 2024 would be withdrawn and the FSP funding allocated to Amtrak reduced by $US 48m, for a total saving of $US 120m.
USDOT says that with the reduced allocation, Amtrak can pursue a master developer to examine both reconstruction and potential expansion of the station. It is also touting a possible public-private partnership (PPP) model for the project, that would harness “private sector innovation and capital to minimise financial risk to taxpayers.”
“This approach will drive efficiencies, reduce costs, and deliver results faster than traditional government-led projects,” USDOT says.
Under plans revealed by the State of New York in 2021, the Penn Station Reconstruction Project proposes the introduction of a 2.32ha single level facility, including a new light-filled train hall that would be the size of the Moynihan Train Hall and Grand Central Terminal’s main concourses combined. Other improvements include the addition of a 2790m2 public plaza outside the station along with new escalators and lifts, improving access to platforms. The proposed Penn Station Capacity Expansion project, a key part of the Gateway Program, would also increase the capacity of tracks and platforms serving the station.
The USDOT plan effectively combines these two projects, placing Amtrak in charge of both, and presenting the possibility of major changes to the project’s design and scope.
Work is already underway on the Penn Station Access Project under which 30.5km of new and rehabilitated track is being installed to create a largely four-track line and to extend Metro North’s New Haven Line to Penn Station, cutting journey times from the Bronx to Manhattan by up to 50 minutes. The $US 3.1bn project overseen by MTA, and has experienced delays, is due to be completed in 2028.
Politics
The announcement appears to bring to a head negotiations over the project between the Trump administration and New York governor, Kathy Hochul. Hochul says that “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,” she says, adding that the use of federal funds “will save New York taxpayers $US 1.3bn that would have otherwise been necessary for this project.”
Duffy points to “MTA’s history of inefficiency, waste, and mismanagement” for requiring the new approach for the project, which he says reflects the Trump’s administration’s objective to end “reckless spending.”
“By putting taxpayers first, we’re ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in,” he says.
Seemingly countering this claim, MTA chair and CEO, Janno Lieber, pointed to the successful completion of the 33rd Street Concourse by MTA in July 2023, the first major improvement to Penn Station in decades, which he says was delivered on time and under budget.
He adds that with over a hundred million MTA customers - two thirds of Penn Station’s total ridership - using the facility every year, “as the major leaseholder in the station, we expect to participate in the administration and Amtrak’s efforts to ensure future plans meet the needs of everyone who uses it.”
