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Trump administration taking control of Penn Station renovation

Penn Station renovation will be controlled by Trump administration
Penn Station renovation will be controlled by Trump administration 02:12

The Trump administration is taking control of the $7 billion plan to renovate New York City's Penn Station and sidelining the Metropolitan Transportation Authority. 

Transportation Secretary Sean Duffy said his agency could deliver a world-class Penn Station by working with Amtrak, the federally chartered railroad company that owns the train hub underneath Madison Square Garden. 

Penn Station plan will save $120 million, transportation secretary says

Duffy said he was withdrawing the MTA as lead for the reconstruction project and that the Federal Railroad Administration would slash Amtrak's grant for project development, which in turn would save New York taxpayers $120 million. 

"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," he said in a prepared release.

Duffy has recently clashed with the New York and the MTA over crime on the subways and the $9 congestion pricing toll on drivers entering the most traffic-snarled parts of Manhattan. Federal authorities have set a Sunday deadline to end the congestion tolls.

"He alone can get this station built after generations on politicians have failed," said Justin Shubow, president of the National Civic Arts Society. 

Governor calls decision "a major victory for New Yorkers"

For years, New York state and city officials have sought to rebuild the nation's busiest train hub, which has been beleaguered by problems from aging tracks to dreary commuter passageways. 

The plan for Penn Station includes a 250,000-square-foot facility with more room for passenger circulation, elevators, escalators, entrances and exits -- plus added retail space.   

Gov. Kathy Hochul called the Trump administration's move "a major victory for New Yorkers" that would save them tax money.

"In multiple meetings with President Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station. Clearly that effort has been successful, and I want to thank the President and Secretary Duffy for taking on the sole responsibility to deliver the beautiful new $7 billion station that New Yorkers deserve. This is a major victory for New Yorkers, and the use of federal funds will save New York taxpayers $1.3 billion dollars that would have otherwise been necessary for this project," Hochul said in a prepared release.

MTA CEO still expects agency to be involved in renovation

MTA Chair and CEO Janno Lieber said he was glad the federal government was focusing on the project, and that he expected the MTA to participate in the plans as the station's major leaseholder.

"Governor Kathy Hochul has prioritized the reconstruction of Penn Station for years, and we're glad the federal government is focusing on it now. Our 33rd Street Concourse project was the first major improvement to Penn Station in decades – and we finished it on time and under budget. Over a hundred million MTA customers – two-thirds of the facility's total ridership – use Penn Station every year. As the major leaseholder in the station, we expect to participate in the administration's and Amtrak's efforts to ensure future plans meet the needs of everyone who uses it," Lieber's statement said.

Layla Law-Gisiko, president of the City Club of New York, which promotes good governance and transparency, said the federal takeover needs to focus on more options for commuters. 

"We need a unified network system. We need a rail system that runs through Penn Station, rather than using Penn Station as a terminal," Law-Gisiko said. 

The federal administration did not immediately provide details about how the project would proceed or how long it would take.  

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