Feds Pick Developer To Lead Penn Station Renovation
- On May 20, 2026, the U.S. Department of Transportation and Amtrak chose Penn Transformation Partners to lead New York Penn Station’s overhaul. - The administration paired the selection with $200 million in additional funding and said the project remains on track to break ground in 2027. - Next, Amtrak and USDOT plan preliminary design and project development work before construction starts, with Andy Byford overseeing delivery.
U.S. Transportation Secretary Sean P. Duffy and Amtrak’s board said on May 20 that they had selected Penn Transformation Partners — a team led by Halmar and Skanska — as master developer for the reconstruction of New York Penn Station. The announcement gives the federal government’s Penn Station plan its first named private development team since Washington took control of the project from the Metropolitan Transportation Authority in April 2025. It also locks in a proposal that keeps Madison Square Garden in place above the station rather than moving the arena. Federal officials said the project is backed by an additional $200 million and remains on track to begin construction in 2027. ### Who did the federal government pick? Penn Transformation Partners was named the winning team by USDOT and Amtrak after a competitive procurement run by Andy Byford, the former New York City Transit president who now serves as a special adviser to the Amtrak board on the project. USDOT and Amtrak said the team will lead the station transformation as a private master developer. (transportation.gov) Halmar and Skanska were identified by federal officials and local coverage as the companies behind Penn Transformation Partners. NY1 reported that two other teams had also been in contention: Penn Forward Now and Grand Penn Partners. ### What exactly is supposed to be built? USDOT said the selected plan calls for a grand entrance on Eighth Avenue leading to a new train hall, open concourses to replace existing passageways, improvements to the station’s underground structure and expanded track capacity. (transportation.gov) The department also said the project would introduce at least limited through-running on the regional rail network, a change intended to let some trains continue through Penn Station instead of terminating there. (ny1.com) NY1 reported that the proposal would also require demolition of the Hulu Theater, while preserving Madison Square Garden above with new exterior cladding. Federal materials describe that arena treatment as a “classical look.” ### Why is Amtrak, not the MTA, running this? April 2025 was the turning point in project control. USDOT said then that the Federal Railroad Administration was removing the MTA from the lead role and putting Amtrak, which owns Penn Station, in charge of the reconstruction effort. (transportation.gov) The department also withdrew a $72 million federal grant that had been awarded to the MTA for project development. (ny1.com) Amtrak and USDOT have since framed the station work as a federal-led public-private partnership. In an August 2025 update, Amtrak said the new structure would put the railroad in the lead role for redevelopment and set a schedule aimed at selecting a master developer by the end of May 2026. (transportation.gov) ### What did officials say about cost and timing? USDOT said on May 20 that it was investing another $200 million to keep the project on track for a 2027 groundbreaking. Media reports on the announcement described the broader Penn Station overhaul as an $8 billion project, up from earlier federal and industry references to roughly $7 billion. (media.amtrak.com) Sean Duffy said in the department’s announcement that the project had been “behind schedule, over budget, and hopelessly mismanaged” before the federal takeover. Byford said the developer selection put the project “one step closer to having shovels in the ground next year.” ### What happens next at Penn Station? (transportation.gov) 2027 is the next key date in the federal schedule. USDOT and Amtrak said the newly selected developer will move into project development for a station that includes a new Eighth Avenue entrance, concourses and track-capacity changes, while Byford continues to oversee delivery for the Amtrak board. (transportation.gov) The next public milestones are expected to come through federal project updates and Amtrak announcements as design, environmental review and preconstruction work advance. Federal statements issued before the selection said preliminary design and related work would run through 2026 and 2027, with construction starting at the end of 2027. (media.amtrak.com) (transportation.gov)
