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Federal Government Takes Control of Penn Station Overhaul, Replacing MTA with Amtrak Leadership

The Trump administration aims to cut costs, streamline governance, and pursue public-private partnerships in the $7 billion reconstruction project.

FILE - Commuters walk through the West End Concourse to access the Long Island Rail Road and Penn Station in New York, June 15, 2017. (AP Photo/Frank Franklin II, File)
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Overview

  • The U.S. Department of Transportation has formally transferred leadership of the Penn Station reconstruction to Amtrak, sidelining the MTA due to concerns over inefficiency and mismanagement.
  • Federal officials project $120 million in taxpayer savings by rescoping the grant and consolidating planning and execution under Amtrak's oversight.
  • The project will adopt a public-private partnership model to reduce financial risks to taxpayers while leveraging private sector investment and innovation.
  • Governor Kathy Hochul publicly supported the federal takeover, citing $1.3 billion in savings for New York taxpayers and thanking President Trump for federal funding.
  • Penn Station, the busiest transit hub in the U.S. with over 600,000 daily commuters, will undergo significant renovations and potential expansion under this new federal directive.