Feds Pick Developer For Penn Station Overhaul

U.S. Transportation Secretary Sean P. Duffy and Amtrak said on May 20 they had selected Penn Transformation Partners — a team led by Halmar and Skanska — as the private master developer for the overhaul of New York Penn Station. The federal government said the project would keep Madison Square Garden in place, add a new entrance and train hall on Eighth Avenue, widen concourses and expand track capacity. The announcement is the clearest sign yet of how the Trump administration intends to remake the station after taking control of the project from New York’s Metropolitan Transportation Authority in April 2025. USDOT also said it would add $200 million for design and permitting work as it aims to start construction in 2027. ### Who exactly got picked to run the project? Penn Transformation Partners was identified by USDOT and Amtrak as the winning master developer team after a competitive procurement process overseen by Andy Byford, special advisor to the Amtrak board. The federal announcement named Halmar and Skanska as the developer team; local coverage said the broader group also includes Vornado Realty Trust, a major landowner around Penn Station. (transportation.gov) Three teams had been shortlisted earlier this year. Amtrak said in March that Penn Forward Now, Penn Transformation Partners and Grand Penn Partners were competing for the assignment, with the winner to be selected in May and announced in June. (transportation.gov) ### What did the federal government say the winning plan would build? USDOT said the selected plan would create a grand entrance on Eighth Avenue leading to a new train hall, replace existing passageways with larger concourses and improve the station’s underground structure. The agency also said the plan would expand track capacity, including at least limited through-running on the regional rail network, and add retail and wayfinding improvements. (media.amtrak.com) NY1 reported that the plan would require demolishing the Hulu Theater at Madison Square Garden while leaving the arena itself in place. Gothamist reported that Amtrak said Madison Square Garden would get a new “classical look” exterior and that interior levels in the train hall would be removed to raise ceilings. (transportation.gov) ### Why are federal officials, not the MTA, making this decision? April 2025 was the turning point in control of the project. Amtrak said USDOT and Amtrak took over the Penn Station overhaul that month and withdrew $72 million in grant funding from the MTA as part of the shift. In May 2025, Duffy named Byford to oversee the redevelopment through a master-developer public-private partnership. (ny1.com) March 23, 2026, brought another step in the federal-led process. Amtrak said an AECOM-led joint venture with LiRo-Hill had been selected for project management services, that early work on National Environmental Policy Act review had begun and that NJ Transit had become a key partner in the transformation. (media.amtrak.com) ### What happened to the idea of moving Madison Square Garden? Madison Square Garden will stay where it is under the selected federal plan, according to USDOT, NY1 and Gothamist. That distinguishes the winning proposal from at least one rival concept: NY1 reported that Grand Penn Partners had proposed moving the arena, while the chosen plan instead keeps the arena and rebuilds around it. (media.amtrak.com) The arena question has been central to Penn Station debates for years because the Garden sits directly above the station. The selected approach avoids a fight over relocating the venue but still requires changes to the site, including removal of the theater attached to the complex, according to NY1. (ny1.com) ### How much money is now attached to the project, and when does construction start? USDOT said on May 20 that it was investing an additional $200 million to keep the project on track for a 2027 groundbreaking. Earlier federal support included a nearly $43 million grant announced in August 2025 to fund project development, the master developer solicitation, permitting and preliminary engineering. (ny1.com) The overall price tag has been reported at roughly $8 billion by several news outlets, though the May 20 federal announcement highlighted the new $200 million commitment rather than a full updated budget. Officials have said preliminary design and NEPA review will run from summer 2026 through the end of 2027, with construction targeted to begin at the end of 2027. (transportation.gov) ### What happens next in the Penn Station process? Summer 2026 is the next dated milestone in the federal schedule. Amtrak said preliminary design and National Environmental Policy Act work are set to run through the end of 2027, alongside continued coordination with project management consultants and rail partners including NJ Transit. (nj.com) The next visible public steps are likely to come through environmental review documents, design releases and procurement updates from USDOT and Amtrak. The agencies have said they want shovels in the ground by the end of 2027. (transportation.gov) (media.amtrak.com)