Trump administration to spend $8 billion on Penn Station, announces master developer

The Trump administration said Wednesday it has tapped a master developer to lead the reconstruction of New York's Penn Station a year after taking over the project from the Metropolitan Transportation Authority.

Penn Transformation Partners was chosen from among three qualified bidders, Amtrak and the administration said in a joint statement. The team consists of construction company Halmar International, Swedish developer Skanska (SKSBF) and Vornado, a real estate developer.

Legal advisor Hunton Andrews Kurth LLP and financial advisor KPMG were brought on last year.

The announcement came the day after Transportation Secretary Sean Duffy told Congress the administration would spend $8 billion on the project.

"When it comes to our rail, we're making generational improvements to the northeast corridor," Duffy said during a Senate appropriations subcommittee hearing on the fiscal 2027 DOT budget. "That means cleaning up Union Station, investing in Union Station, and [a] transformative investment in New York's Penn Station ? $8 billion, by the way."

Amtrak and NJ Transit will contribute additional funds to the project, according to the administration. Groundbreaking is set for before the end of 2027.

In announcing the team on Wednesday, Duffy said the renovation will increase the capacity of the nation's busiest transit hub. The design "takes inspiration from this lost architectural gem while fitting with the major structures there currently, particularly Madison Square Garden and Moynihan Train Hall," the administration said in a press release. A detailed design plan will be released in coming months.

The Metropolitan Transportation Authority had been in charge of the project until the U.S. DOT took it over last April and kicked off procurement in August. Duffy accused the MTA of mismanaging the massive renovation.

"We took over the transformation of New York Penn Station because the project was behind schedule, over budget, and hopelessly mismanaged," Duffy said Wednesday. "One year later, we continue to hit major milestones at record speed," he said. "2027 can't come soon enough."

Special advisor to the Amtrak board Andy Byford oversaw the solicitation process. Byford was head of the MTA from 2017 to 2020, where he earned the nickname "Train Daddy."

"Everyone at Amtrak is thrilled to announce Penn Transformation Partners (Halmar) and even more excited that the project is one step closer to having shovels in the ground next year," Byford said.

Gov. Kathy Hochul, in a statement, said she would "thoroughly review" the proposal over the coming weeks.

"To be successful, this project must accomplish two things: dramatically improve the experience for every rider who passes through Penn Station, from the A train to the Acela, while protecting the record performance of the LIRR and ensuring the costs are not borne by New York commuters or taxpayers," Hochul said.

In addition to the $8 billion announced Tuesday, the administration will invest an additional $200 million in federal railroad funds on the station.

Next up is finalizing contract negotiations, working toward permits and achieving financial and commercial close before getting shovels in the ground by the end of 2027, officials said.