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2mo ago

MTA Refuses to Join Federally Led Penn Station Redevelopment

The agency's rejection highlights disputes over long‑term lease protections, who will pay for the $7–8 billion plan, and how rail service would be protected during construction.

A rendering of the Penn Station design selected by Amtrak.
Image
MTA CEO Janno Lieber (left) slammed Penn Station project overseer Andy Byford as making a disingenuous offer.
MTA Chair Janno Lieber (left) said there is no daylight between him and Gov. Kathy Hochul (right) in their handling of the Trump administration's push to rebuild Penn Station.

Overview

  • MTA chair and CEO Janno Lieber declined on Monday to sign a Memorandum of Agreement offered by Amtrak and USDOT, saying the deal would undercut the Long Island Rail Road’s lease rights and had “the appearance of impropriety.”
  • Amtrak senior adviser Andy Byford has said the MOA is standalone, does not weaken the MTA lease, and that the project will move forward whether or not the MTA signs.
  • The federal team has already chosen a master developer, Penn Preservation Partners, and estimated the project will cost about $7–8 billion, but it has not finalized financing or contracts.
  • Lieber warned that signing could allow developers to alter or “tear up” the MTA’s recently upgraded LIRR concourse and raised questions about the planned purchase of the Infosys Theater at Madison Square Garden and any payments to its owner.
  • Governor Kathy Hochul has urged cooperation and federal funding remains pledged, but the dispute leaves unresolved operational safeguards, financing details and the risk of legal or political fights that could delay construction targeted to begin in late 2027.