Transportation Department Targets 2027 Start for Redevelopment of NYC’s Penn Station

Transportation Secretary Sean Duffy called the current state of Penn Station "unacceptable" and promised to put improvements on a fast track.
Published: 8/30/2025, 10:12:12 AM EDT
Transportation Department Targets 2027 Start for Redevelopment of NYC’s Penn Station
People crowd as they attempt to board trains inside Penn Station in New York City. (Adam Gray/Getty Images)

The Transportation Department said it expects to kick off the redevelopment of New York City’s Pennsylvania Station by the end of 2027, taking on the challenge of overhauling the underground labyrinth that has discombobulated travelers for decades.

Transportation Secretary Sean Duffy made the announcement on Aug. 27, five months after President Donald Trump ordered the federal government to assume the task of fixing the nation’s busiest train station. The federal takeover, he said, will finally put the long-overdue project into full motion.

“We are going to move at the speed of Trump. This is not going to be a 20-, 30-year project,” Duffy said at a press conference. “This is actually about how do we move this more quickly, and more beautifully, through the process, so it’s not your grandkids that are going to enjoy the work that we’re doing now. You all are going to get to enjoy this great project.”

The original Penn Station, completed in 1910, was a celebrated architectural marvel that inspired awe as much as it facilitated travel. But in 1963, however, the station was demolished to make way for Madison Square Garden (MSG), a giant sports and concert venue, leaving behind an underground transit hub loathed by many New Yorkers for being dark, crowded, and confusing.

Today, Penn Station handles more than 600,000 passengers on a daily basis. As home to three different railroads—Amtrak, New Jersey Transit, and the Long Island Railroad—and two subway lines, the hub is a maze of tracks, corridors, stairwells, and concourses. In contrast to its Beaux-Arts–style predecessor, whose soaring vaulted glass ceilings flooded travelers with light, so much of today’s activity takes place beneath MSG, in low-ceilinged tunnels deprived of natural light.
“Crumbling infrastructure, bleak and dirty architecture, unnavigable hallways, and no inviting spaces for families with kids—the current state of Penn Station is unacceptable,” Duffy said in a statement after the press conference.

The scope and cost of the new federal-led redevelopment are not yet clear. The earlier plan by New York City’s Metropolitan Transportation Authority (MTA) carried a $7 billion price tag.

Duffy said his department will provide Amtrak, the federally chartered railroad company that owns Penn Station, with nearly $43 million in grants to jump-start design work and preliminary engineering work.

The transportation secretary traveled to New York by Amtrak for the announcement, joined by Andy Byford, the former head of New York City Transit who is now serving as a special adviser to Amtrak on the project.

“Today, we are officially providing advance notice for the solicitation of a master developer,” Byford said. “From today, firms interested in working on this project can officially start the process of becoming our master developer partner.”

“It will be an open and fair competition with no preconceived notions of the outcome,” he added, emphasizing that no matter which design is chosen, any serious plan must include a single-level, open facility with better circulation to and from train platforms, while also accommodating future passenger growth.

One major question that has to be addressed is the fate of Madison Square Garden. Some advocates have argued that moving the arena is essential to restoring the station to its historical grandeur, but no efforts to force a move have ever succeeded.

Madison Square Garden is owned by billionaire James Dolan, who also owns the NBA’s New York Knicks, the stadium’s longtime tenant. Last year, the New York City Council extended the MSG’s operating permit for only five years, although Dolan sought a permanent lease.

Byford said the issue will be left to the design competition.

“We will evaluate the various proposals against a series of criteria, and, obviously, whether the Garden moves or stays will be decided over time,” Byford said on Aug. 27.

Progress on building a new Penn Station has stalled in recent years under MTA leadership, especially after the collapse of former Gov. Andrew Cuomo’s proposal to finance the revamp through a massive real estate deal that would have six blocks around the station demolished to make way for 10 skyscrapers. Duffy said the MTA has “proved it was incapable” of delivering major infrastructure on time or on budget.

“I have not been shy in expressing my frustration with MTA,” the transportation secretary said. “They spend a lot of money, I’m not pleased with their deliverables, and I didn’t have faith that they could deliver on this project.”

Meanwhile, New York Gov. Kathy Hochul, who has sparred with Duffy over issues such as Manhattan’s congestion pricing and subway crime, welcomed the move as a major cost-saving for the state.

“One of the first things I raised with President Trump in January was the need to give New York City the beautiful Penn Station it deserves,” Hochul said in a statement in response to Duffy’s announcement. “Those conversations secured federal funding in April, allowing us to reallocate more than $1 billion for other critical projects. With Secretary Duffy now advancing this project, New Yorkers are one step closer to a station worthy of this great city.”