Trump Administration’s USDOT Greenlights $43M Grant, Sets Timeline for Penn Station Transformation

NEW YORK, NY – U.S. Transportation Secretary Sean P. Duffy and Special Advisor Andy Byford confirmed today that the long-awaited New York Penn Station “Transformation” Project will break ground by the end of 2027, with federal funding and an aggressive timeline now in place.

To accelerate early-phase work, Secretary Duffy announced that the Department of Transportation (USDOT) will provide Amtrak with nearly $43 million in federal grant funding. The money will go toward preliminary design, permitting, engineering, and the solicitation of a master developer to spearhead the public-private partnership.

“Crumbling infrastructure, bleak and dirty architecture, unnavigable hallways, and no inviting spaces for families with kids – the current state of Penn Station is unacceptable,” said U.S. Transportation Secretary Sean P. Duffy. “Under President Trump’s direction, we will transform Penn Station into a world-class transit hub that is beautiful, safe, and clean. The aggressive schedule we’ve outlined will ensure we are back on track to deliver a gleaming monument worthy of New York City.”

Byford, who was appointed in May as Special Advisor to the Amtrak Board for the redevelopment, underscored that urgency is now guiding the project. “The transformation of New York Penn Station is underway, and USDOT and Amtrak are strongly committed to beginning construction by the end of 2027,” he said. “We’re grateful to Secretary Duffy and the entire Department of Transportation, as well as President Trump and his administration, for bringing urgency and clarity to the Station’s Transformation and their confidence in allowing Amtrak to carry out their vision for a world-class, safe, and modern station.”

Next Steps: Developer Selection and Early Work

As part of the schedule, Byford confirmed that the formal solicitation process for a master developer will launch by the end of October 2025, with a selection expected by May 2026. The chosen developer will be critical in executing the public-private partnership model, which is intended to streamline delivery, reduce costs, and keep the project on its ambitious schedule.

The nearly $43 million grant will also support project development work, including environmental reviews, early engineering studies, and permitting.

Background and Federal Oversight Shift

In April 2025, Secretary Duffy announced that USDOT and Amtrak were taking control of Penn Station’s overhaul from the Metropolitan Transportation Authority (MTA), citing repeated failures to deliver major infrastructure projects on time and within budget. As part of that shift, USDOT withdrew $72 million in previously allocated grant funding, signaling a reset in project leadership.

The decision also reflected the fact that Amtrak owns the station, making it the logical lead entity in transforming the busiest rail hub in North America.

Broader Vision: A New Era for Penn Station

The Trump administration and USDOT are positioning the Penn Station Transformation as more than just a renovation. The project is intended to redefine the passenger experience, eliminate overcrowding and confusing layouts, and deliver a bright, modern, and family-friendly hub that can meet New York City’s long-term transit needs.

By ensuring federal leadership, a committed funding stream, and a clear developer-driven process, officials say the project is now firmly on track.

Originally reported by U.S. Department Of Transportation.