New York City, New York – The Federal Railroad Administration has assumed control of the $7 billion renovation project of New York City’s Penn Station rail hub, taking over from the Metropolitan Transportation Authority (MTA) of the city. This decision, announced by Transportation Secretary Sean Duffy, aims to save taxpayers an estimated $120 million.
Duffy emphasized the importance of a safe and clean Penn Station that reflects the greatness of America. He cited the MTA’s history of inefficiency, waste, and mismanagement as the primary reasons for the change in leadership. By prioritizing taxpayers’ interests, the Federal Railroad Administration aims to ensure that every dollar is spent wisely to create a transit hub that all Americans can be proud of.
The Trump administration is pushing for a public-private partnership model for the Penn Station renovation to mitigate potential financial risks for U.S. taxpayers and reduce costs by an estimated $120 million. Under this new approach, Amtrak will lead the project with federal oversight, effectively removing the MTA from the renovation process. As the owner of Penn Station, Amtrak will work alongside the U.S. Department of Transportation to revitalize the rail station serving over 10 million passengers annually.
The newly appointed leadership for the project is set on delivering a safe, modern, and efficient transportation hub for the nation’s financial capital, according to Duffy. The U.S. Department of Transportation disclosed that despite the MTA receiving a $72 million federal grant for project development in November 2024, a revised funding allocation will result in significant savings for U.S. taxpayers, amounting to an estimated $120 million.
New York Lieutenant Governor Kathy Hochul expressed gratitude towards President Donald Trump and Transportation Secretary Sean Duffy for taking on the responsibility of the $7 billion renovation project. Hochul highlighted the substantial financial relief provided by the federal funds, saving New York taxpayers $1.3 billion that would have otherwise been required for the project. The decision was hailed as a major victory for New Yorkers, ensuring that the renovation of Penn Station proceeds in a cost-effective manner that benefits the public.