Trump Administration Says It Will Take Over Renovation of Penn Station

In a significant and controversial development, U.S. Transportation Secretary Sean Duffy announced on Thursday that the federal government would be assuming full control of the $7 billion overhaul of Pennsylvania Station in New York City, removing authority from the Metropolitan Transportation Authority (M.T.A.). This decision marks yet another escalation in the ongoing friction between the Trump administration and New York State’s transportation leadership.

This shift in control comes on the heels of a contentious dispute over the state’s congestion pricing initiative, which Secretary Duffy recently demanded be halted. The federal government’s latest move underscores a broader power struggle that has continued to build between Washington and local authorities in New York.

Penn Station, one of the world’s busiest yet most criticized transit centers, has long been a subject of debate and delay. Calls for a major renovation to address the station’s dark, overcrowded corridors have persisted for decades. Yet efforts to push forward with a comprehensive upgrade have consistently stalled due to conflicting interests between city, state, and federal entities.

The Trump administration has not yet outlined a specific vision for the renovation. However, federal officials have indicated a preference for Amtrak—the federal rail corporation that owns the station—to work alongside private-sector investors on the redevelopment. It also remains uncertain whether the administration supports any of the existing proposals for redesigning or expanding the facility.

In remarks accompanying the announcement, Secretary Duffy did not hold back criticism of the M.T.A., accusing the agency of mismanaging the project. “President Trump is committed to ending the era of unchecked spending and lack of accountability,” Duffy stated. “New Yorkers deserve a Penn Station that represents the pride and innovation of our nation. The M.T.A.’s longstanding issues with waste, mismanagement, and inefficiency have made a change in leadership essential.”

Reacting to the decision, Governor Kathy Hochul appeared to embrace the federal government’s involvement, framing it as a financial win for the state. In a written statement, she emphasized that she had previously lobbied President Trump to support federal funding for the overdue revamp. “This outcome represents a tremendous success,” Hochul declared. “I thank President Trump and Secretary Duffy for assuming sole responsibility for delivering a world-class station. Their leadership will save New York taxpayers approximately $1.3 billion.”

While the state seems prepared to step back financially, the M.T.A. offered a more measured response. Janno Lieber, Chairman and CEO of the M.T.A., acknowledged the federal government’s increasing role and expressed willingness to collaborate. Lieber highlighted the agency’s recent completion of the new 33rd Street concourse for Long Island Rail Road and subway riders as an example of successful station improvement. However, the M.T.A. noted it had not received prior notice of Secretary Duffy’s announcement.

Renovating Penn Station has proven extraordinarily complex, not least because of what lies above it—Madison Square Garden, one of the world’s most iconic sports and entertainment venues. The Garden’s owners have consistently resisted proposals that would require relocating or altering the arena, making significant structural changes to the train station beneath it a challenge.

Until now, the M.T.A. has overseen the station’s upgrade plans, primarily because it serves around two-thirds of the station’s roughly 600,000 daily commuters. In 2023, the M.T.A. celebrated the completion of the 33rd Street concourse project, which was intended to serve as a blueprint for further improvements. Still, ambitious plans to expand capacity by demolishing surrounding city blocks have generated community opposition and delayed progress.

Ultimately, control of Penn Station resides with Amtrak, which is a federally chartered corporation. Its board members are presidential appointees, giving the sitting U.S. president substantial influence over major decisions. Currently, all members of Amtrak’s board were nominated by President Joe Biden, with the exception of Chairman Anthony R. Coscia, who was appointed during the Obama administration.

Recently, the White House reportedly pressured Amtrak CEO Stephen Gardner to resign, citing his close ties to the Biden administration. As of now, no successor has been named, and Amtrak has not publicly commented on the Penn Station situation.

New Jersey Transit, whose trains also rely heavily on Penn Station, responded with cautious optimism. “As one of the station’s largest users, NJ Transit looks forward to working collaboratively with the U.S. Department of Transportation and Amtrak on this reconstruction project,” said Kris Kolluri, the agency’s chief executive.

Despite the political undertones, some regional transit advocates are hopeful that federal involvement could accelerate long-stalled progress. Tom Wright, CEO of the Regional Plan Association—a group that has long championed Penn Station’s transformation—suggested that centralized control could streamline decision-making and attract competitive bids from private developers. “If President Trump wants to name the new station after himself, and that’s what it takes to get this done, so be it,” Wright quipped.

Nevertheless, skepticism remains. Democratic Assemblyman Tony Simone, who represents the district surrounding the station, expressed doubts about the federal government’s capacity to manage such a large-scale project, especially while reducing local funding. “I find it hard to believe that this administration can effectively oversee a project of this size while simultaneously pulling financial resources,” Simone said. He recently introduced a plan that would prioritize building affordable housing and green space near the station.

The Trump administration has yet to unveil its formal design plans for the site. However, an unsigned draft executive order reviewed by The New York Times hinted at a vision inspired by classical architecture—emphasizing grandeur and national pride.

Penn Station’s redevelopment is also tied to the larger Gateway Program, a massive infrastructure initiative that seeks to double train capacity across the Hudson River. The project includes new tunnels that would supplement the current ones, which are over a century old and suffered severe damage during Hurricane Sandy in 2012. However, increasing train flow through the tunnels hinges on Penn Station being able to accommodate more rail traffic.

To resolve that issue, Amtrak has proposed an expansion of the station into the block south of West 31st Street, currently home to residential buildings, businesses, and the historic St. John the Baptist Roman Catholic Church. Preservationists and local advocates have resisted this plan, arguing that demolishing such structures would harm the community fabric.

Some experts have proposed operational changes instead—such as having more trains pass through Penn Station and return outside Manhattan, rather than terminating there. While Amtrak has implemented some version of this, the majority of the traffic still comes from NJ Transit and the Long Island Rail Road.

Danny Pearlstein of the Riders Alliance, a public transportation advocacy group, was critical of the administration’s timing. He argued that the announcement was less about improving transportation and more about political retaliation for New York’s congestion pricing policy, which President Trump has vowed to eliminate. “This seems like a reactive move to punish the M.T.A. and the state of New York,” Pearlstein said. “If they genuinely cared about this station, they would have supported it from the start with meaningful investments in public transit and its riders.”

For now, the future of Penn Station hangs in the balance—caught between political agendas, long-standing design challenges, and the urgent need to modernize one of the nation’s most vital transportation arteries.