WASHINGTON — The Federal Railroad Administration and Amtrak will take over the long-discussed remodeling of New York’s Penn Station, Transportation Secretary Sean Duffy announced today (April 17, 2025), saying the move came at the direction of President Donald Trump.
The action removes the Metropolitan Transportation Authority from its lead role in the project. It was accompanied by the slashing of some $120 million in federal funding awarded last November to the MTA and Amtrak, the latest move by the Trump administration to claw back funds awarded under the Biden administration.
A Department of Transportation press release says the administration has determined that the FRA and Amtrak can deliver a “world-class” Penn Station, and that since the building is owned by Amtrak, there is no reason to delegate leadership of the project.
“New York City deserves a Penn Station that reflects America’s greatness and is safe and clean,” Duffy said. “The MTA’s history of inefficiency, waste, and mismanagement also meant that a new approach is needed.”
The MTA had received a $72 million grant for the station project under the Federal-State Partnership for Intercity Passenger Rail program. A letter from FRA Chief Counsel Kyle Fields to MTA CEO Janno Lieber indicates that grant has been withdrawn, and that planning will be conducted under a grant to Amtrak.
At the same time, the Amtrak grant under the Federal-State Partnership has been cut, according to a letter from Fields to Amtrak President Roger Harris, “to reflect the focus on planning and construction for Penn Station.” Amtrak had received two grants, one for $72.5 million and another for $71.9 million, for different aspects of the Penn Station project [see “FRA awards $1.5 billion …,” Trains News Wire, Nov. 15, 2025].
Lieber responded this evening with a statement saying that New York Gov. Kathy Hochul “has prioritized 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. …. 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.”
Hochul, in a statement, said she had requested federal funding for the Penn Station project in multiple meetings with Trump.
“Clearly that effort has been successful,” Hochul said in the statement, “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 that would have otherwise been necessary for this project.”
Duffy’s criticism of the MTA is the latest salvo in the administration’s ongoing dispute with the agency. The U.S. DOT has moved to rescind its approval for the MTA’s congestion pricing program in Manhattan, which the MTA is fighting in court [see “Federal government pushes back deadline …,” News Wire, March 20, 2025]. Duffy has also threatened to withhold funding from the MTA over concerns about transit-system crime, although statistics show that crime is down [see “Citing crime concerns …,” News Wire, March 19, 2025].
The New York Times reports that administration officials have indicated they would prefer Amtrak partner with private investors on the project. The newspaper also notes it is unknown whether the administration has a preference for any of the existing, competing proposals for the station renovation [see “New plan unveiled …,” News Wire, March 12, 2025].
