Edited by: TJVNews.com

In a dramatic shakeup of one of New York City’s most consequential infrastructure projects, President Donald Trump’s administration has taken full control of the long-anticipated reconstruction of Penn Station, removing the Metropolitan Transportation Authority (MTA) from its leading role and placing Amtrak at the helm. The surprise federal intervention was disclosed Thursday in a letter from the Federal Railroad Administration (FRA) to MTA Chair Janno Lieber, as was reported by The Gothamist.

The move fundamentally alters the power dynamics surrounding Penn Station’s future and signals a significant pivot in national infrastructure strategy. According to the information provided in The Gothamist report, the Federal Railroad Administration Chief Counsel Kyle Fields announced that the overhaul of Penn Station—one of the busiest and most outdated transit hubs in the nation—will now be administered by Amtrak, which owns the facility.

Transportation Secretary Sean Duffy, in a sharply worded statement obtained by The Gothamist, framed the takeover as part of President Trump’s broader mandate to rein in government waste and inefficiency.

“President Trump has made it clear: the days of reckless spending and blank checks are over,” Duffy said. “New York City deserves a Penn Station that reflects America’s greatness and is safe and clean. The MTA’s history of inefficiency, waste, and mismanagement also meant that a new approach is needed.”

Duffy’s remarks call attention to the administration’s aggressive posture in reshaping not only New York’s transit future, but the federal government’s role in major public works projects. The Gothamist report noted that under this new structure, the federal government will fund and control the station’s $7 billion reconstruction, a bold and sweeping move that bypasses the normal channels of state-led transportation planning.

New York Governor Kathy Hochul quickly praised the decision, calling it a “major victory for New Yorkers.” In a statement reported by The Gothamist, Hochul emphasized that her repeated appeals to President Trump for federal support had finally paid off.

“In multiple meetings with President Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station,” she said. “Clearly that effort has been successful, and I want to thank the president and Secretary Duffy for taking on the sole responsibility to deliver the beautiful new $7 billion station that New Yorkers deserve.”

She added that the use of federal funding would spare New York taxpayers approximately $1.3 billion, which had previously been earmarked to cover part of the project’s cost.

The Gothamist report detailed that the original MTA-led plan for Penn Station had envisioned an overhaul of the station without displacing Madison Square Garden, which sits directly above the complex. The MTA had also been coordinating with Amtrak and NJ Transit on a proposed expansion that would add new tracks and increase passenger capacity.

But now, federal officials plan to merge the reconstruction and expansion efforts into a single project under one unified grant, led by Amtrak. According to FRA’s Fields, this consolidation will “streamline planning and ensure design continuity,” making it easier to attract a developer and move toward shovels in the ground.

In the wake of the announcement, MTA Chair Janno Lieber issued a reserved but pointed statement, highlighting the MTA’s current status as the primary leaseholder at Penn Station.

“The MTA is the major leaseholder in the station,” Lieber said, as quoted by The Gothamist. “We expect to participate in the administration’s and Amtrak’s efforts to ensure future plans meet the needs of everyone who uses it.”

Though the MTA has effectively lost control of the project’s leadership, Lieber’s comments suggest the agency will continue to advocate for the interests of its daily ridership, which includes a vast number of Long Island Rail Road commuters who depend on Penn Station as a central artery into Manhattan.

The Trump administration’s decision to intervene so directly and decisively in a state infrastructure project is unprecedented, and it comes with both promise and peril. On one hand, the infusion of federal dollars and consolidation of oversight under Amtrak may finally cut through decades of bureaucratic gridlock and stalled designs. On the other, bypassing New York State agencies may generate political and logistical friction, especially given the deeply embedded local relationships and long-term planning already in motion.

The Gothamist has previously reported on the long and checkered history of attempts to modernize Penn Station, including failed proposals, stalled public-private partnerships, and bitter fights over Madison Square Garden’s footprint. For decades, Penn Station has been a national embarrassment—cramped, disjointed, and ill-equipped to handle the volume of passengers that pass through it daily. Despite serving over 600,000 commuters a day, the station’s subterranean layout remains largely unchanged since its controversial 1960s-era demolition.

Now, with the federal government assuming full responsibility, there is renewed hope that Penn Station can finally be transformed into the modern, efficient, and dignified transit hub that New Yorkers have long demanded—and that visitors to the city expect from its most trafficked rail portal.

With Amtrak now in the driver’s seat, The Gothamist reported that the next steps will involve selecting a lead developer, finalizing a comprehensive plan that integrates both renovation and expansion, and initiating the necessary environmental and community review processes. The project is expected to span several years and will likely coincide with other federally backed transit initiatives in the region, including upgrades to the Northeast Corridor rail system.

“We are delighted that the administration is taking charge,” said Justin Shubow, president of the National Civic Art Society, in a statement to The Gothamist. “Only President Trump can get a new Penn Station built after generations of politicians have failed.”

Shubow added that Trump’s appreciation for classical architecture—seen in his prior executive orders promoting “beautiful public buildings”—makes him uniquely qualified to realize a vision rooted in tradition and grandeur. “We hope he will make Penn Station classical again.”

Even traditionally nonpartisan voices are welcoming the change—albeit cautiously. Tom Wright, president of the influential Regional Plan Association, told The Gothamist that he would support the federal takeover if it means progress finally comes to Penn Station after years of delays.

“This isn’t a surprise to those of us who’ve been following this for a couple years now,” Wright said. “The MTA had real success with the renovation of the Long Island Rail Road concourse, but things haven’t been moving forward lately.”

Wright acknowledged that since Amtrak owns Penn Station, it is logical for the federal government to assume leadership. In a surprising aside, he even floated the idea of renaming the station after Trump—“if that’s what it takes to get a great Penn Station.”

The Gothamist reported that under the new federal framework, the reconstruction and possible expansion of Penn Station will be merged into a single federally managed grant—giving Amtrak the authority to pursue private developers and push forward with a holistic redevelopment strategy.