The Department of Transportation and Amtrak on Wednesday selected the “master developer” team that will lead the $8 billion makeover of Penn Station in New York City.
Transportation Secretary Sean Duffy and Amtrak’s board of directors announced they had chosen Penn Transformation Partners, one of three qualified bidders, as the head renovator for the project. The group comprises two construction companies, New York-based Halmar International and Sweden-based Skanska.
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Under its redesign plan, the successful bidding team wants to keep Madison Square Garden in place but add a “classical look” to it. The arena sits directly over the train station. There were concerns previously that Madison Square Garden would have to be relocated to allow enough room for the rebuilding and expansion of Penn Station.
The construction design will be released in the coming months, and work on the project is expected to begin by the end of next year.
“In selecting Penn Transformation Partners and their innovative plan, we are one step closer to delivering a world-class travel hub that daily commuters and travelers have dreamed of for decades,” Duffy said in a statement. “Under President Trump’s historic leadership, the days of Penn Station’s cramped hallways, broken infrastructure, and snarled rail lines are numbered. 2027 can’t come soon enough.”
The federal government and Amtrak have been in charge of the redevelopment project together ever since President Donald Trump fired the Metropolitan Transportation Authority in April 2025 over concerns the project had been delayed for years.
“We took over the transformation of New York Penn Station because the project was behind schedule, over budget, and hopelessly mismanaged,” Duffy said. “One year later, we continue to hit major milestones at record speed.”
The announcement came one day after Duffy revealed the project’s $8 billion price tag in congressional testimony.
“When it comes to our rail, we’re making generational improvements to the Northeast Corridor,” he told the Senate on Tuesday. “That means … a transformative investment in New York’s Penn Station — $8 billion, by the way.”
The station serves Amtrak, New Jersey Transit, and the MTA’s Long Island Rail Road. It is also connected to New York City’s subway system.
Gov. Kathy Hochul (D-NY), who frequently clashes with the Trump administration over such issues as transportation, praised Duffy and Amtrak for accelerating the long-awaited project.
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“New Yorkers have deserved a better Penn Station for decades,” she posted on X. “Today’s announcement of the selection of a master developer is an important step towards delivering for New Yorkers who ride everything from the Acela to the A train.”
Over the weekend, Hochul blamed Trump for letting a union strike shut down the LIRR. Trump fired back on Truth Social, calling her a “Dumacrat.” The strike only lasted three days after labor unions reached a deal with MTA negotiators to settle a wage dispute.
