The Trump administration has taken the MTA off the redesign of Penn Station, a project that was expected to cost at least $7 billion.
U.S. Department of Transportation Secretary Sean Duffy announced on Thursday that Amtrak, with the backing of the DOT, will solely lead the overhaul of the station, as well as its possible expansion. As part of this move, the DOT revoked a $72 million grant awarded to the MTA in November and reduced a $71 million grant to Amtrak, a move the DOT says will save taxpayers $120 million.
In a statement, MTA Chair and CEO Janno Lieber said he was glad the federal government is now focused on Penn.
“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.
Federal takeover of the redesign begins a new chapter for a project that has undergone several iterations and seen many false starts. In June 2023, Gov. Kathy Hochul announced that she would focus on the station’s redesign, halting plans to develop 18 million square feet of commercial space on sites surrounding Penn that are mostly controlled by Vornado Realty Trust.
Shortly after assuming office in 2021, Hochul suspended plans to expand the station to the south, which would require the demolition of 50-plus properties on West 31st Street to make way for eight new tracks. The DOT’s announcement indicates that Amtrak will seek out a master developer “to examine both reconstruction and potential expansion of the station.”
Though Hochul has spoken out against Amtrak seizing the block south of Penn, possibly through eminent domain, her response Thursday was tantamount to: Great, thanks for footing the whole bill!
“In multiple meetings with President Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station,” she said in a statement. “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.”
She also said the change would save New Yorkers $1.3 billion, an amount the state previously allocated to the project.
The DOT’s announcement does not specify the projected cost of the overhaul and expansion of Penn, nor does it commit to covering the full bill. The press release indicates the project will use a public-private partnership model, “harnessing private sector innovation and capital to minimize financial risk to taxpayers.”
It is unclear what the DOT’s announcement means for the $58 million contract awarded in 2022 to FXCollaborative Architects and WSP USA for preliminary engineering and architecture work on the Penn redesign. The firms were authorized to begin work on that contract in 2023.
As plans for Penn Station have dragged, groups have floated alternatives to the visions for the beleaguered transit hub.
Grand Penn Alliance, a group backed by hedge fund manager and Republican donor Thomas Klingenstein, was encouraged by the DOT’s announcement. In March, the group re-upped a proposal it introduced in 2023 that called for moving Madison Square Garden to the former Hotel Penn site and building a park on the former arena site. Renderings show a classical facade, new train hall and single-level concourse.
Grand Penn Community Alliance Chief Architect Alexandros Washburn said in a statement that his group has had “very positive and productive meetings with officials in Washington.”
“It is clear that our plan is the best plan worthy of the President’s bold vision for a reimagining of Penn Station while building a classical, world class transit hub and creating a vibrant neighborhood around it.”
The state’s plan to work with private developers to build 10 towers, mostly commercial space with up to 1,798 residential units, was expected to help fund the expansion and renovation of Penn. This part of the project has been on pause for the last two years; it is unclear if any iteration of this vision will move forward.
Vornado has said that it plans to get to work on an apartment building in the district at 34th Street and Eighth Avenue, though that site is outside the state’s plan. The real estate investment trust is also considering adding apartments to its plans for the former Hotel Penn site. The firm declined to comment on Thursday’s news.