Feds Tap Developer for Penn Station Overhaul

U.S. Transportation Secretary Sean Duffy and Amtrak on May 20 named Penn Transformation Partners — a team led by Halmar International and Skanska — as the master developer for the overhaul of New York Penn Station. The federal government said it is adding $200 million to keep the project on track and reiterated that construction is scheduled to begin in 2027. The selected plan keeps Madison Square Garden above the station rather than forcing the arena to move. Amtrak said the redesign will add a new Eighth Avenue entrance, larger concourses, more track capacity and improvements to the station’s underground structure. ### Which developer did the federal government choose? Penn Transformation Partners was selected as the private master developer team after what officials described as a competitive procurement run by Amtrak and overseen by special adviser Andy Byford. The team is identified by the Transportation Department as Halmar and Skanska. Andy Byford said the procurement process showed that Amtrak and the Transportation Department could move the project toward construction next year. In March, Amtrak had said three teams were under consideration: Penn Forward Now, Penn Transformation Partners and Grand Penn Partners. ### What exactly is the new Penn Station plan supposed to build? The Transportation Department said the plan will construct a grand entrance on Eighth Avenue leading to a new train hall. Federal officials also said cramped passageways would be replaced with open concourses and that the redesign would support new retail and better wayfinding. Amtrak said the project also aims to expand track capacity, including at least limited through-running on the regional rail network. Spectrum News NY1 reported that the proposal would require demolition of the Hulu Theater while leaving Madison Square Garden in place. ### Is Madison Square Garden still staying where it is? Madison Square Garden will remain above Penn Station under the selected proposal, according to the Transportation Department and local reports on the announcement. Federal officials said the arena would receive new cladding to give it what they called a more classical look. The rejected alternatives had treated the arena differently. NY1 reported that one rival bid backed moving Madison Square Garden, while the Halmar-linked concept that was chosen kept the arena in place and focused instead on a new façade and Eighth Avenue entrance. ### How did Amtrak end up running a New York station project? In April 2025, the Transportation Department and Amtrak took control of the Penn Station overhaul from the Metropolitan Transportation Authority, according to Amtrak’s project history. Amtrak said the department also withdrew $72 million in grant funding from the MTA at that time. March 2026 brought another project update: Amtrak said an AECOM-led joint venture with LiRo-Hill had been chosen for project management services, NJ Transit had joined as a key partner, and early work had begun on environmental review and service optimization. That update placed the master-developer selection in a larger federal-led public-private structure, with Amtrak coordinating both development and rail-operations planning. ### How much money is attached to the overhaul now? The Transportation Department said on May 20 that it was investing an additional $200 million in the Penn Station project. The New York Times and other local reports said the administration had put the total federal commitment for the overhaul at about $8 billion. Earlier funding had already been committed. In August 2025, the Transportation Department awarded Amtrak a $43 million federal grant for project development, permitting work and preliminary design engineering, according to Amtrak. ### What happens next before riders see construction? Summer 2026 through the end of 2027 is the window Amtrak previously gave for preliminary design and National Environmental Policy Act work. The agency said in March that early work on NEPA review was already underway with the Federal Railroad Administration. The next visible milestone is groundbreaking in 2027. The Transportation Department said the new $200 million infusion is meant to keep the project on schedule for that start, with Amtrak, NJ Transit, the AECOM-LiRo-Hill management team and Penn Transformation Partners all now part of the next phase.