In its first major blow to NYC transit, President Trump’s Department of Transportation (USDOT) crushed the MTA’s plans Thursday for a revitalized Penn Station in Midtown — choosing instead to take on the project themselves with the federally backed Amtrak rail system.
Amtrak, which owns Penn Station, will now lead the revitalization effort at the nation’s busiest rail hub. The move comes as the Federal Railroad Administration (FRA) threw out the MTA’s plans for leading the Penn Station Reconstruction project on April 17.
The decision means that the MTA’s multi-billion-dollar reconstruction concepts — including a new 250,000-square-foot single-level that would increase space — are likely scrapped.
While praising President Trump, USDOT Secretary Sean Duffy, a former reality television star, said in a press release that the federal takeover will save taxpayers $120 million.
“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. By putting taxpayers first, we’re ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in.”
Gov. Kathy Hochul said she repeatedly requested that the federal government fund the “long-overdue” overhaul of Penn Station.
“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 said. “This is a major victory for New Yorkers, and the use of federal funds will save New York taxpayers $1.3 billion dollars that would have otherwise been necessary for this project.”
Janno Lieber, MTA chair and CEO, applauded the federal government for focusing on the project, while stressing the agency’s prominent presence in the hub.
“Governor Kathy Hochul has prioritized the reconstruction of Penn Station for years, and we’re glad the federal government is focusing on it now,” he said. “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. Over a hundred million MTA customers – two-thirds of Penn Station’s total ridership – use the facility every year. 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.”
The federal lead on the Penn Station Reconstruction follows the USDOT’s attempt to halt the MTA’s congestion pricing program in Manhattan on Feb. 19, claiming the tolls are “illegal.”
Hochul and the MTA immediately responded by filing a federal lawsuit, insisting the USDOT has no authority to end the program. Right now, congestion pricing is still active at least until October as the permanent resolution continues to play out in court.
Meanwhile, commuter advocacy groups condemned Duffy’s Penn Station move.
“Squabbling over Penn Station is all about who claims credit and cuts ribbons, not the quality of the train service that is the lifeblood of our region and the keystone of our economy,” Danny Pearlstein, policy and communications director of the Riders Alliance, said. “Just like with his baseless attacks on congestion relief, the secretary again shows us that he’s chasing clout rather than saving time for millions of public transit riders in New York and New Jersey.”
Multiple transit routes convene at Penn Station, all from agencies including Amtrak, the MTA’s Long Island Rail Road, and New Jersey Transit. As busy as it is, the aging station, which first opened in 1910, needs work to expand train capacity, transit agencies have repeatedly said.
Before the Duffy announcement, several developers and advocacy groups, including the Grand Penn Community Alliance on March 11, laid out ideas for the future Penn Station.
It is unclear right now if the USDOT will consider plans from private developers who have already been in talks with the MTA and other agencies about their designs.
