The U.S. Department of Transportation (USDOT) has selected a joint venture led by Aecom, in partnership with LiRo-Hill, to provide management services for the modernization and development of New York’s Penn Station.
Under the contract, the Aecom–LiRo NYPennT joint venture will collaborate with Amtrak and the selected lead developer on the comprehensive transformation of New York’s Penn Station, with goals including increased safety, operational efficiency, and traffic capacity, as well as providing a modern passenger experience.
The announcement was made by Secretary of Transportation Sean P. Duffy and Amtrak Special Advisor Andy Byford, who outlined new milestones in the station’s transformation project.
In addition to selecting the consortium, it was decided that NJ Transit, New Jersey’s public transit operator, would be involved in the project, and that preliminary work would begin on environmental procedures and a service optimization study, conducted in collaboration with the Federal Railroad Administration (FRA).
Additionally, following a progress update on the Penn Station development project in New York, it was decided that Amtrak would meet with each of the potential lead developers to discuss design proposals.
“This new step forward with USDOT reflects our commitment to keeping the project on schedule and ensuring transparency in its implementation. Enthusiasm is growing with every milestone, and we are ready to keep up the momentum until we deliver a world-class station in the heart of New York,” said Andy Byford.
Key milestones of the New York Penn Station project
In April 2025, USDOT and Amtrak took control of the modernization of New York’s Penn Station by withdrawing $72 million in funding from the New York Metropolitan Transportation Authority (MTA). In August 2025, a $43 million federal grant was awarded to begin preparatory work. In September 2025, USDOT also took over management of Union Station in Washington, D.C., and in October 2025, the process to select the lead developer was launched, along with the appointment of technical, financial, and legal advisors.
In January 2026, three finalist teams were selected for the role of lead developer: Penn Forward Now (Fengate), Penn Transformation Partners (Halmar), and Grand Penn Partners (Macquarie).
The final selection is scheduled for May 2026, and design work and environmental assessments will take place between the summer of 2026 and the end of 2027, when construction is also expected to begin.
According to the plans, construction is expected to begin by the end of 2027.
USDOT and Amtrak have made a joint commitment to accelerate the station’s reconstruction and modernization project with a plan aimed at transforming the station into a modern and efficient transportation hub.
Priorities include renovating and modernizing the existing infrastructure, expanding transit space capacity, and improving passenger access so that passenger flows can be better managed. The project also aims to increase safety and operational efficiency, adapt the infrastructure to an ever-increasing volume of rail traffic, and provide a world-class experience for users.
New York’s Penn Station is the busiest train station in the western United States. Over 13 million intercity train passengers passed through the station in fiscal year 2025. Approximately 450 Amtrak trains use the station daily, and the operator generates over one billion USD in revenue from ticket sales.
This station accounts for over 45% of travel on the NEC (Northeast Corridor) and handles over 200,000 commuter trips.
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