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President Trump slashes $120 million from Penn Station’s bloated renovation budget, firing the inefficient MTA and putting Amtrak in charge of creating a station that “reflects America’s greatness.”
At a Glance
- Trump administration transfers control of Penn Station’s redevelopment from the MTA to the federal government, implementing a public-private partnership model led by Amtrak
- Transportation Secretary Sean Duffy announces the move will save taxpayers $120 million and improve efficiency
- Federal Railroad Administration will lead reconstruction and expansion efforts under a single grant
- Governor Hochul praises the federal takeover as a “major victory for New Yorkers,” highlighting $1.3 billion in savings for state taxpayers
Trump Administration Takes Charge of Penn Station Revamp
In a decisive move to ensure fiscal responsibility and project efficiency, the Trump administration has taken over the long-delayed Penn Station renovation project from New York’s Metropolitan Transportation Authority. The initiative puts Amtrak, which already owns the station, in the driver’s seat for the modernization efforts. This strategic shift represents a significant change in approach for the crucial transportation hub that serves hundreds of thousands of commuters daily in Midtown Manhattan.
The Federal Railroad Administration (FRA) has consolidated oversight by combining two previously separate projects – the reconstruction of the existing station and the expansion of rail capacity – under a single comprehensive grant program. Transportation Secretary Sean Duffy emphasized that the administration’s intervention was necessary after years of stalled progress and financial mismanagement by local authorities.
Significant Cost Savings for Taxpayers
The federal takeover is projected to deliver substantial savings for both federal and state taxpayers. The Department of Transportation has withdrawn a $72 million redesign grant from the MTA and reduced Amtrak’s grant for station expansion, cutting a total of $120 million from the project’s budget. These financial adjustments reflect President Trump’s commitment to ending wasteful government spending while still delivering essential infrastructure improvements.
“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 and clean.” – Transportation Secretary Sean Duffy
Governor Kathy Hochul, who previously identified the station’s renovation as a priority for her administration, expressed appreciation for the federal intervention. The governor highlighted that the move would save New York taxpayers approximately $1.3 billion, a significant financial relief for the state that can redirect those funds to other pressing infrastructure needs.
Mixed Reactions from Local Stakeholders
While the federal takeover has been welcomed by many, some local representatives have expressed reservations about the administration’s approach. The announcement comes amid ongoing tensions between the Department of Transportation and the MTA over New York’s controversial congestion pricing program, which has faced criticism from the Trump administration.
“I am beyond skeptical that this federal government can manage a project of this size by seizing control while simultaneously slashing funding.” – Assembly member Tony Simone
Others in the community have expressed cautious optimism about the change in leadership. Samuel Turvey of ReThink NYC noted that the administration’s frustration with the lack of progress under previous arrangements likely motivated the intervention. The MTA’s redesign plan had stalled due to various factors, including the post-pandemic commercial real estate slowdown that affected related development projects.
Future Design Considerations
Details about the specifics of the federal-led makeover remain under development, including the possibility of relocating Madison Square Garden, which currently sits atop Penn Station. A Neo-classical vision called “Grand Penn” proposed by Trump donor Thomas Klingenstein would require such relocation, though the administration has not yet committed to any particular design approach.
“[The Federal Railroad Administration] has determined the necessary planning for reconstruction and expansion of Penn Station will be conducted under a single grant, led by Amtrak.” – an attorney for the FRA
The existing Penn Station, which handles more passengers than all New York area airports combined, has long been criticized for its cramped conditions, poor accessibility, and outdated infrastructure. The Trump administration’s intervention promises to address these deficiencies through a more efficient, streamlined approach that puts America’s transportation needs first while protecting taxpayer dollars from wasteful bureaucratic processes.