the staff of the Ridgewood blog
New York NY , the Trump administration has announced a major shift in the leadership of the long-awaited reconstruction of New York’s Penn Station — handing over full control to Amtrak and the U.S. Department of Transportation (USDOT), effectively sidelining the Metropolitan Transportation Authority (MTA), which had been leading the project for years.
According to the Transportation Department’s April 2025 statement, Amtrak and USDOT are now positioned to “deliver a world-class Penn Station” since Amtrak is the station’s owner and a key federal stakeholder.
“Since Amtrak owns the station, which is an essential asset serving over 10 million Amtrak riders annually, there is no reason to delegate leadership of this important project,” the DOT stated.
MTA, NJ Transit, and Amtrak React to Penn Station Power Shift
Although Amtrak declined to comment, NJ Transit President and CEO Kris Kolluri expressed openness to the federal takeover, noting NJ Transit’s role as one of the largest users of the station. NJ Transit and Long Island Rail Road (operated by MTA) account for the majority of Penn Station’s ridership.
“As one of the largest users of the station, NJ Transit looks forward to working with USDOT and Amtrak on the Penn Station Reconstruction project,” Kolluri said.
A Financial Win? Gov. Hochul Applauds Federal Investment
New York Governor Kathy Hochul praised the Trump administration’s move as a financial victory for New York taxpayers, citing meetings where she personally advocated for federal involvement.
“This is a major victory for New Yorkers,” Hochul said. “The use of federal funds will save New York taxpayers $1.3 billion.”
$7 Billion Renovation Plan: What Comes Next?
With an estimated $7 billion price tag, the reconstruction of America’s busiest train station will include modern entrances, expanded platforms, and improved passenger circulation. The Federal Railroad Administration is also “rescoping and slashing” grant costs by $120 million, though details on how that figure is calculated remain unclear.
Amtrak is now empowered to pursue a master developer, potentially paving the way for station expansion and modernization. The plan may include elements of a public-private partnership, a model endorsed by the Trump administration for its ability to leverage private capital and reduce taxpayer risk.
Public-Private Partnerships: A Controversial Past
While PPPs have succeeded in projects like the 7 train extension and the Port Authority Bus Terminal revamp, critics worry about an overemphasis on commercial development at the expense of commuter needs.
A 2023 plan led by Vornado Realty Trust, a major property holder around Penn Station, stalled amid concerns about prioritizing retail space over transit improvements.
Urban planners have long criticized the 1960s-era rebuild of Penn Station, where Madison Square Garden and office towers were constructed above the station, placing over 200 structural columns that restrict platform expansion and create bottlenecks for daily commuters.
Penn Station’s Future
Despite decades of setbacks, this latest leadership shift could mark a turning point for Penn Station, potentially bringing long-awaited relief to the more than 600,000 daily commuters who rely on it.
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MTA worst run organization.