FRA rescinds MTA’s project leadership in New York Penn Station overhaul

The Federal Railroad Administration (FRA) notified the Metropolitan Transportation Authority (MTA) and Amtrak that the Penn Station Capacity Expansion and Reconstruction project will now solely be led by Amtrak under a single grant.  

In a letter to MTA, FRA noted that when the MTA was awarded fiscal year 2024 (FY24) grant funding under its Federal-State Partnership (FSP) for Intercity Passenger Rail Program for the Northeast Corridor (NEC), the authority and Amtrak would have to conduct analyses, along with stakeholder and public outreach, prior to FRA making any determinations under the National Environmental Policy Act. In the letter, FRA noted that “initiating the environmental review for the [project] has determined the necessary planning for reconstruction and expansion of Penn Station will be conducted under a single grant, led by Amtrak.” 

With that decision, FRA is withdrawing its selection of MTA’s Penn Station Reconstruction project from the FY24 FSP-NEC program, and it will no longer lead the project. The U.S. Department of Transportation (USDOT) will instead back Amtrak to spearhead the infrastructure initiative.  

“President [Donald] Trump has made it clear: the days of reckless spending and blank checks are over,” said USDOT Secretary Sean P. Duffy. “New York City deserves a Penn Station that reflects America’s greatness and is safe and clean. The MTA’s history of inefficiency, waste and mismanagement also meant that a new approach is needed. By putting taxpayers first, we’re ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in.” 

In a letter to Amtrak, FRA noted it expects Amtrak to lead efforts to “assess and evaluate regional service options to identify improvements with the goal of optimizing service and recognizing fiscal constraints.”  

FRA also notified Amtrak in the letter it is reducing the amount awarded under the FY24-FSP-NEC grant “by the appropriate amount to reflect the focus on planning for reconstruction and expansion of Penn Station.” 

FRA says the Trump Administration determined that USDOT and Amtrak can together deliver a world-class Penn Station, adding that Amtrak owns the station; thus, eliminating the need to delegate leadership of the project. 

FRA adds the Trump Administration is also championing a public-private partnership model for Penn Station, harnessing private sector innovation and capital to minimize financial risk to taxpayers. FRA says this approach will drive efficiencies, reduce costs and deliver results faster than traditional government-led projects. 

“Under President Trump’s vision, we’re restoring accountability to infrastructure projects,” said FRA Chief Counsel Kyle Fields. “By empowering Amtrak and leveraging private investment, we’re guaranteeing a Penn Station that’s safer, more reliable and built to serve the American people for generations.” 

MTA’s previous award 

The MTA’s $72 million FSP Program grant was awarded in November 2024 and intended for project development related to station reconstruction alone. With the reduced allocation in its separate FSP Program grant, FRA says Amtrak can pursue a master developer to examine both reconstruction and potential expansion of the station.