New York's Metropolitan Transportation Authority will no longer lead the renovation of Pennsylvania Station after the state's governor requested the Trump administration take over the project.
Amtrak will spearhead the project, with additional backing from the Transportation Department, Secretary Sean Duffy said Thursday. The Federal Railroad Administration would also rescope and slash its federal grant to Amtrak for project development, a move it said would save taxpayers about $120 million.
The new strategy, developed under the Trump administration, prioritizes fiscal responsibility and private sector expertise, the DOT said. The new approach would also drive efficiencies, reduce costs and be completed faster than traditional government-led projects, it added.
Gov. Kathy Hochul said she requested that the federal government fund the redevelopment project in multiple meetings with President Trump. "Clearly that effort has been successful," she said.
MTA Chief Executive Janno Lieber said the agency is glad that the federal government is currently focused on the renovation project. "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," he said.
The administration's vision for the Penn Station renovation project wasn't immediately clear. Amtrak didn't immediately respond to a request for comment.
Plans to redevelop Penn Station have ebbed and flowed for decades, since the original station was torn down to make way for the Madison Square Garden arena. The MTA in November 2024 was awarded a $72 million grant intended for project development related to station reconstruction alone.
The recent reshuffling is the latest match-up between the Trump administration and New York's transportation agency, after Duffy earlier called on the state to end its congestion-pricing program.
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