Penn Station construction set to begin in 2027 for $7 billion redevelopment project, U.S. DOT says
The Penn Station redevelopment project in New York City is expected to start construction in 2027, U.S. Transportation Secretary Sean Duffy announced Wednesday.
For decades, the nation's busiest transit hub has languished as a dark and dreary place that commuters love to hate. Now, Duffy hopes President Trump's decision to assume control of fixing the station will put the project into hyperdrive.
"We are going to move at the speed of Trump. This is not going top be a 20-, 30-year project," Duffy said Wednesday. "This is actually about how do we move this more quickly, and more beautifully, through the process, so it's not your grandkids that are going to enjoy the work that we're doing now. You all are going to get to enjoy this great project."
Duffy said the Department of Transportation will provide Amtrak with nearly $43 million in grant funding to jumpstart the work and begin construction by the end of 2027.
The DOT secretary rode an Amtrak train from Washington, D.C. to Penn Station for the announcement. He was joined by Andy Byford, who ran New York's transit system for years and is overseeing the $7 billion project.
"I'm so happy to be back in New York. This is where I want to be, and this is the project that I want to do," Byford said. "Everyone has an opinion on Penn Station and what should be done. It has been talked about for years. Others have tried, but we're confident that we will succeed.
"I want, in the future, this station ... to ooze excellence in every form. I want every interaction with customers to be consistently excellent. Every single aspect," Byford added.
Earlier in the morning, Duffy started his trip at Union Station in D.C., where he announced the DOT will be reclaiming control of the busy transit hub. He also joined Amtrak leaders for the launch of the railroad's new Acela trains, which are supposed to shave 20 minutes off the ride to New York.
Trump administration takes over Penn Station redevelopment project
Duffy announced back in April that he was taking over the Penn Station project, sidelining the Metropolitan Transportation Authority.
He said he withdrew the MTA as the lead and would work with Amtrak, the federally chartered railroad company that owns Penn Station, instead.
"I have not been shy in expressing my frustration with MTA. They spend a lot of money, I'm not pleased with their deliverables, and I didn't have faith that they could deliver on this project," Duffy said Wednesday.
Duffy has said the move would save $120 million, and New York Gov. Kathy Hochul, who has clashed with Duffy over congestion pricing and subway crime, previously said it was a major win, because the state was able to pocket the $1.3 billion it would have spent on the project.
"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," Hochul said in a statement after Wednesday's announcement. "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."
Details of the plan to revamp Penn Station
New York state and city officials have sought for years to rebuild Penn Station, which sits under Madison Square Garden. Its aging tracks and dreary passageways have long been a magnet for the homeless.
The redevelopment plan includes a new commuter train hall, a new open concourse with improved accessibility and new green space for the neighborhood. Whether the project will require MSG to move is still being resolved.
"We will evaluate the various proposals against a series of criteria and, obviously, whether the Garden moves or stays put will be decided over time," Byford said.
There is also the question about whether Penn Station is due for a name change once the project is completed.
"I imagine you're asking, is this going to be Trump Station? i think that is a nice ring to it, but we're all working on building this project and getting it done. If you want to have a conversation about name changes, that's a conversation that could happen at some other point," Duffy said.
Duffy said Byford will now begin selecting a developer, starting the process in October and then making a decision by the end of May 2026.
"Ladies and gentlemen, the steps to completely transform Penn Station starts today," Byford said.
