Under direction of the President, U.S. Department of Transportation Secretary Sean P. Duffy announced the Federal Railroad Administration (FRA) is taking bold action to protect American taxpayers by withdrawing New York’s Metropolitan Transportation Authority (MTA) from leading the Penn Station Reconstruction project. Instead, Amtrak, backed by USDOT, will spearhead this critical infrastructure initiative.

As part of this shift in approach, FRA is also rescoping and slashing approximately $120 million in federal grants to Amtrak for project development. 

Building a World Class Penn Station

The Administration determined that USDOT and Amtrak can together deliver a world-class Penn Station. 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, according to the USDOT.

The Administration is also championing a public-private partnership model for Penn Station, harnessing private sector innovation and capital to minimize financial risk to taxpayers. This approach will drive efficiencies, reduce costs, and deliver results faster than traditional government-led projects.

“We’re restoring accountability to infrastructure projects,” said FRA Chief Counsel Kyle Fields. “By empowering Amtrak and leveraging private investment, we’re guaranteeing a Penn Station that’s safer, more reliable, and built to serve the American people for generations.”

History of Funding

The MTA’s $72 million FSP Program grant was awarded in November 2024 and intended for project development related to station reconstruction alone. 

With the reduced allocation in its separate FSP Program grant, Amtrak can pursue a master developer to examine both reconstruction and potential expansion of the station. 

The Administration’s new strategy prioritizes fiscal responsibility, private sector expertise, and Amtrak’s leadership to transform New York Penn Station into a world-class facility while safeguarding taxpayer dollars, according to USDOT.

For more details, view FRA’s letter to the MTA regarding the withdrawal of the FY 2024 FSP Program grant and FRA’s letter revising the Amtrak grant allocation.