Feds Select Developer for Penn Station

U.S. Transportation Secretary Sean Duffy and Amtrak’s board said on May 20 that they had selected Penn Transformation Partners — a team led by Halmar International and Skanska — as master developer for the reconstruction of New York Penn Station. The choice gives the federal government a private-sector lead for a project it took over from New York’s Metropolitan Transportation Authority in April 2025. Amtrak and the U.S. Department of Transportation said the team will oversee a redesigned station while keeping Madison Square Garden in place above it. The agencies also said they were adding $200 million in federal money, on top of roughly $43 million awarded in 2025 for early project work. ### Who did Washington pick to run the redevelopment? Penn Transformation Partners is a joint team of Halmar and Skanska, according to announcements from USDOT and Amtrak on May 20. The team was one of three finalists for the master developer role, alongside Penn Forward Now, led by Fengate, and Grand Penn Partners, led by Macquarie. (transportation.gov) Sean Duffy said the federal government chose a private developer after concluding the project had been “behind schedule, over budget, and hopelessly mismanaged” under the prior setup. Amtrak said the developer will work through a public-private partnership structure that covers design, development and delivery planning for the station transformation. (transportation.gov) ### What exactly is supposed to change at Penn Station? Amtrak and USDOT said the plan calls for a new train hall with a grand entrance on Eighth Avenue, wider concourses, improved wayfinding and retail, and upgrades to the station’s existing underground structure. The agencies also said the project is intended to expand track capacity and allow at least limited through-running on the regional rail network. (transportation.gov) The February 2026 project FAQ said the overhaul is aimed at improving safety, accessibility, operational efficiency and passenger capacity at the nation’s busiest rail station complex. Amtrak’s fact sheet said Penn Station handled more than 12 million Amtrak passengers in fiscal 2024. ### Why is Amtrak, not the MTA, in charge? (transportation.gov) The Federal Railroad Administration said in April 2025 that it was removing the MTA from the lead role and putting Amtrak in charge, with USDOT backing the effort. The department also withdrew $72 million in grant funding tied to the earlier MTA-led approach and said it would rescope the project. (media.amtrak.com) Andy Byford, the former New York City Transit president who was later named special adviser to the Amtrak board for the project, has been the public face of the federal effort since May 2025. USDOT said his role was to oversee the redevelopment through the master-developer process. ### Is Madison Square Garden still part of the plan? (transportation.gov) Madison Square Garden remains in place under the federal plan. USDOT and Amtrak said the selected developer will deliver a rebuilt station “all while maintaining the iconic Madison Square Garden,” with new exterior cladding intended to give the arena a more classical appearance. (transportation.gov) That position marks a break from some earlier Penn Station proposals that contemplated moving the arena. The current federal plan instead pairs a rebuilt station below with exterior changes above, rather than relocating the venue. ### How much money is on the table now? USDOT said on May 20 that it was investing an additional $200 million to keep the project on track for a 2027 groundbreaking. (transportation.gov) In August 2025, the department announced a separate grant of nearly $43 million to Amtrak for project development, permitting and preliminary engineering tied to the developer solicitation. The agencies have not yet published a full construction price tag in the materials reviewed here. What they have set out publicly is the near-term federal funding for development work and the schedule for selecting a master developer and moving into design and environmental review. (transportation.gov) ### What happens next, and when? Amtrak said in March that the master developer would be chosen in May and announced in June, but the selection was disclosed on May 20. The same March update said preliminary design and National Environmental Policy Act review would run from summer 2026 through the end of 2027, with construction starting at the end of 2027. (media.amtrak.com) The next milestones are now tied to that schedule. Amtrak, USDOT and Penn Transformation Partners are expected to move into preliminary design, permitting and environmental review in 2026 and 2027, with the agencies still targeting a groundbreaking before the end of 2027. (media.amtrak.com)