The Federal Railroad Administration (FRA) is withdrawing the Metropolitan Transportation Authority (MTA) from leading the Penn Station reconstruction project in New York City, a “bold action to protect American taxpayers”, the agency says.
Instead, Amtrak, backed by US Department of Transportation (USDOT), will spearhead this critical infrastructure initiative.
As part of this shift in approach, FRA is also rescoping and slashing the federal grant to Amtrak for project development. This will save taxpayers approximately USD 120 million while still ensuring a safe, modern, and efficient transit hub for the country’s financial capital.
The Trump Administration determined that USDOT and Amtrak can together deliver a world-class Penn Station. Since Amtrak owns the station, which is an essential asset serving over 10 million Amtrak passengers annually, there is no reason to delegate leadership of this important project, FRA explains.
“President Trump has made it clear: the days of reckless spending and blank checks are over. New York City deserves a Penn Station that reflects America’s greatness and is safe, clean. The MTA’s history of inefficiency, waste, and mismanagement also meant that a new approach is needed. By putting taxpayers first, we’re ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in,” Secretary Duffy said.
The Trump Administration is also championing a public-private partnership model for Penn Station reconstruction project, harnessing private sector innovation and capital to minimise financial risk to taxpayers. This approach will drive efficiencies, reduce costs, and deliver results faster than traditional government-led projects.
By empowering Amtrak and leveraging private investment, we’re guaranteeing a Penn Station that’s safer, more reliable, and built to serve the American people for generations,” the Chief Counsel of FRA, Kyle Fields, said.
The MTA’s USD 72 million FSP Programme grant was awarded in November 2024 and intended for project development related to station reconstruction alone. With the reduced allocation in its separate FSP Programme grant, Amtrak can pursue a master developer to examine both reconstruction and potential expansion of the station. The Trump Administration’s new strategy prioritises fiscal responsibility, private sector expertise, and Amtrak’s leadership to transform New York Penn Station into a world-class facility while safeguarding taxpayer dollars.
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