Feds Pick Developer For Penn Station

U.S. Transportation Secretary Sean Duffy and Amtrak on May 20 named Penn Transformation Partners — a team led by Halmar and Skanska — as the private master developer for the overhaul of New York Penn Station. The announcement formalized a federal-led plan that puts Amtrak in charge of the project after the Trump administration took control from New York’s Metropolitan Transportation Authority in April 2025. The U.S. Department of Transportation said it is adding $200 million to the effort and keeping the project on schedule for a 2027 groundbreaking. Federal officials also said Madison Square Garden will remain above the station rather than be moved. ### Who did the federal government pick to run the job? Penn Transformation Partners is the development team selected to lead the station rebuild. USDOT said the group, made up of Halmar and Skanska, will serve as the private master developer for the project. Andy Byford, special adviser to the Amtrak board, said the selection followed a competitive procurement process. USDOT said bidders were assessed on cost, concourse capacity, access, operations, passenger growth and the ability to create new revenue streams for Amtrak. ### What does the current plan actually include? The Transportation Department said the plan calls for a new train hall entrance on Eighth Avenue, wider concourses, improved wayfinding, retail space and work on the station’s underground structure. The agency also said the redesign would expand track capacity and allow at least limited through-running on the regional rail network. Madison Square Garden will stay in place under the selected concept. USDOT said the arena would receive new exterior cladding with what the agency described as a more classical appearance, while the station below is rebuilt. Local coverage on May 20 said the plan would require demolition of the Hulu Theater at Madison Square Garden to create the new Eighth Avenue entrance. Federal materials released with the announcement did not provide a full design package or a final construction sequence. ### When did Amtrak take over from the MTA? April 2025 was the turning point in project control. Amtrak said in a March 2026 update that Duffy announced in April 2025 that USDOT and Amtrak were taking over the Penn Station overhaul from the MTA. That same Amtrak update said USDOT withdrew $72 million in grant funding from the MTA as part of the takeover. The federal government has since presented the project as a public-private partnership, with Amtrak managing development and procurement. ### How much money has Washington committed so far? USDOT said on May 20 that it was investing an additional $200 million to keep the Penn Station project on track for a 2027 start. That funding came on top of nearly $43 million announced in August 2025 for project development, permitting and preliminary design engineering, according to Amtrak and USDOT. The overall price tag has been described differently in public accounts. Federal statements in 2025 referred to a $7 billion redevelopment plan, while coverage of the May 20 announcement cited an $8 billion makeover. USDOT’s May 20 release did not give a single total project cost in the text accompanying the developer selection. ### Why are federal officials saying the project needed a reset? Sean Duffy said in the May 20 announcement that the government took over the Penn Station transformation because the project had been “behind schedule, over budget, and hopelessly mismanaged.” He said selecting Penn Transformation Partners put the project closer to a new station after what he described as a year of accelerated milestones. Amtrak’s March 2026 update also contrasted the federal process with the prior MTA-led structure. Duffy said then that the project would not have had “as smooth or transparent of a process” under the MTA. ### What happens next before riders see construction? USDOT said the project remains on track to break ground in 2027. Amtrak said in March that early work had already started on National Environmental Policy Act activities and a service optimization study with the Federal Railroad Administration. The next phase will center on design, environmental review and coordination among Amtrak, USDOT, NJ TRANSIT and Penn Transformation Partners. Federal officials said those steps are intended to carry the project to shovels in the ground next year.