April 19 (UPI) — The Federal Railroad Administration has taken control of the $7 billion renovation of New York City’s Penn Station rail hub from the city’s Metropolitan Transportation Authority.
Transportation Secretary Sean Duffy announced the move on Thursday and said it will save taxpayers an estimated $120 million.
“New York City deserves a Penn Station that reflects America’s greatness and is safe and clean,” Duffy said in a news release.
“The MTA’s history of inefficiency, waste and mismanagement also meant that a new approach is needed,” Duffy added. “By putting taxpayers first, we’re ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in.”
The Trump administration is advocating for a public-private partnership model for the Penn Station renovation to reduce potential financial harm for U.S. taxpayers while lowering costs by an estimated $120 million.
The Federal Railroad Administration is putting Amtrak in charge of the project with federal oversight and removing New York City’s MTA from the renovation.
Amtrak owns Penn Station, which serves more than 10 million passengers every year, and the Trump administration has determined that the U.S. Department of Transportation and Amtrak can work together to renovate the rail station.
The project’s new leadership will ensure a “safe, modern and efficient transportation hub for the nation’s financial capital,” Duffy said
New York City’s MTA in November 2024 received a $72 million federal grant for project development, but a lower allocation in a separate funding allocation will save U.S. taxpayers an estimated $120 million, according to the U.S. DOT.
“In multiple meetings with President [Donald] Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station,” Hochul said in a statement on Thursday. “
“Clearly, that effort has been successful,” Hochul added.
She thanked Trump and Transportation Secretary Sean Duffy for taking responsibility for the $7 billion project.
“This is a major victory for New Yorkers,” Hochul said, “and the use of federal funds will save New York taxpayers $1.3 billion that would have otherwise been necessary for this project.”