Construction on the long-delayed revamp of Penn Station will start in late 2027, the Trump administration announced on Wednesday. U.S. Transportation Secretary Sean Duffy said proposals will be accepted starting in October for the redevelopment of the busy train hall, with a goal to start construction in two years. The news comes after the feds put Amtrak in control of the project over Gov. Kathy Hochul in April. It’s unclear how much the project will now cost under the updated timeline and possibly new design, but previous estimates from the MTA listed a $7 billion price tag.
“Crumbling infrastructure, bleak and dirty architecture, unnavigable hallways, and no inviting spaces for families with kids—the current state of Penn Station is unacceptable,” Duffy said in a statement.
“Under President Trump’s direction, we will transform Penn Station into a world-class transit hub that is beautiful, safe, and clean. The aggressive schedule we’ve outlined will ensure we are back on track to deliver a gleaming monument worthy of NYC.”
Duffy said DOT will provide Amtrak with $43 million for the project’s development, solicitation of a master developer, as well as permitting and preliminary engineering work.
The MTA was ousted from the project in April after Duffy accused the agency of being “incapable of delivering major infrastructure on time or on budget,” according to an official statement.
Hochul thanked his administration for assuming responsibility for the project and called the cuts a “major victory for New Yorkers,” saying they would save taxpayers $1.3 billion.
On Wednesday, Gov. Kathy Hochul released a statement celebrating the project’s advancement and the federal takeover.
“One of the first things I raised with President Trump in January was the need to give New York City the beautiful Penn Station it deserves. Those conversations successfully secured federal funding in April to advance redevelopment, allowing us to reallocate over $1 billion for other critical projects. With Secretary Duffy now advancing this project and requesting design proposals, New Yorkers are one step closer to a station worthy of this great city.”
Former NYC Transit president Andy Byford will lead the project as Amtrak’s special adviser, a role he assumed earlier this year. On Thursday, Byford said the search for a developer will begin by the end of October, with a final selection scheduled for May 2026.
Byford, who earned the nickname “Train Daddy” for his time running the NYC subway, said the project’s new direction may start from scratch, including its projected costs, as reported by the New York Post.
The MTA’s $7 billion proposal replaces the transit hub with a 250,000 square foot single-level facility with amenities, retail space, and housing.
According to Byford, the solicitation process will not specify whether to move Madison Square Garden or keep it atop the station, a contentious issue in previous redevelopment plans. In August 2023, the City Council granted the famous arena a five-year permit, which members said would give its owners enough time to work with the railroads on the station’s overhaul.
The MTA’s proposal has been competing with a few other prominent plans, including one from Alexandros Washburn, architect and former chief urban designer for NYC. Revealed in March, the “Grand Penn” plan would create a public space the size of Bryant Park and a commuter train hall inspired by the original station, while relocating the famous arena across the street.
Another $6 billion proposal from private development firm ASTM North America sought to keep MSG at its current location, instead wrapping it with a massive stone facade and creating a more unified train hall. The firm claimed its plan was $1 billion cheaper than the MTA’s.
In October, a feasibility study by Amtrak, the MTA, and NJ Transit found that the only way to increase Penn Station’s capacity is by expanding its footprint. The study explored four concepts to double train capacity without expanding the station’s size, but none proved feasible, shifting the focus toward expansion.
The Trump administration said it was open to all proposals, but suggested a focus on projects that improve Penn within its existing footprint. Previous plans to demolish an entire block south of Penn Station will not be part of the new plan, according to The City.
Byford said that the idea will be “on hold” with plans this fall to study ways to maximize train capacity without adding new platforms.
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