NEW YORK – In a significant shift in responsibility, the federal government has taken over the $7 billion renovation initiative for New York City’s Pennsylvania Station (Penn Station). Transportation Secretary Sean Duffy announced that the Metropolitan Transportation Authority (MTA) is being sidelined from its leadership role in the project, which is aimed at revitalizing one of the country’s busiest rail hubs.

The reconstruction of Penn Station has been a longstanding objective for state and city officials, aimed at addressing various challenges including outdated infrastructure and subpar commuter facilities. With the federal government now at the helm, Amtrak, the company legally responsible for the station, will collaborate closely with the Department of Transportation to expedite the overhaul.

According to Secretary Duffy, this transfer of oversight is projected to yield savings of approximately $120 million for taxpayers. “By working with Amtrak,” Duffy stated, “we can deliver a world-class Penn Station that meets the needs of New Yorkers and travelers alike.”

Governor Kathy Hochul expressed her appreciation for the federal government’s decision, emphasizing its potential benefits for New York taxpayers. She remarked, “Clearly, our efforts in meetings with President Trump have borne fruit, and I want to thank the President and Secretary Duffy for taking on the sole responsibility to deliver the beautiful new station that New Yorkers deserve.” Hochul also estimated that this new management approach could save taxpayers more than $1 billion.

While the announcement marks a pivotal change in leadership, details regarding new plans for renovations or adjustments to the existing project scope remain undisclosed. There are no clarified timelines or updated details on construction activities under the federal administration.

Janno Lieber, Chair and CEO of the MTA, acknowledged the federal government’s increased focus on the project. He indicated that despite the change in leadership, the MTA anticipates remaining involved in the planning process as the primary leaseholder of the station.

The takeover of the Penn Station renovation project by the federal government signifies a proactive approach to address the inefficiencies experienced under MTA management. With the cooperation of Amtrak and active federal oversight, stakeholders hope to bring significant improvements to both the infrastructure and commuter experience at this vital transit hub.