In a dramatic shift for one of New York City’s most high-profile infrastructure efforts, the Trump administration has taken control of the $7 billion Penn Station redevelopment project from the Metropolitan Transportation Authority (MTA), transferring leadership to Amtrak and the U.S. Department of Transportation (DOT).

The announcement, made in an April 17 news release, outlines a new direction for the project, which aims to transform the aging and congested transit hub into a safer, more efficient transportation gateway.

According to the DOT, the federal government will now pursue a public-private partnership model to accelerate project delivery and reduce costs. The move marks a major shift in strategy and is expected to reshape how the project is managed moving forward.

“Under President Trump’s vision, we’re restoring accountability to infrastructure projects,” said Kyle Fields, chief counsel for the Federal Railroad Administration, in the release. “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.”

The DOT says the revamped plan will “drive efficiencies, reduce costs and deliver results faster than traditional government-led projects.” While exact implications for current work at the site remain unclear, the change is already being framed as a push to streamline operations and cut federal spending.

The DOT also announced a reduction in the scope of the project’s federal grant, which it claims will save U.S. taxpayers approximately $120 million.

MTA to Stay Involved — But in a Secondary Role

Although no longer leading the redevelopment effort, the MTA says it still expects to participate in future phases. In a statement following the announcement, MTA Chair and CEO Janno Lieber emphasized the authority’s continuing interest and noted past successes.

“We’re glad the federal government is focusing on [Penn Station] now,” said Lieber. “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.”

He also pointed to the MTA’s successful completion of the 33rd Street Concourse as evidence of the agency’s capabilities and investment in Penn Station improvements.

Project Timeline and Construction Impact Unclear

Neither the MTA nor the DOT has provided a clear outline of how the leadership change will affect project timelines or current construction activities at the site. Work is ongoing, and the uncertainty raises questions for contractors and stakeholders involved in the redevelopment.

One of the project’s greatest logistical challenges is maintaining full operations at the station during construction — a task that will remain regardless of who leads the project.

“You have to deal with it while keeping it all moving, all circulating, all operating at the same time,” said Aryeh Lemberger, senior vice president at global engineering firm WSP. “It’s a monumental challenge.”

WSP, which has been involved in planning and engineering aspects of the redevelopment, is among the many contractors now adjusting to the project’s evolving oversight structure.

Strategic Shift Reflects Broader Infrastructure Vision

The Trump administration’s decision to take over Penn Station’s overhaul reflects a broader push to centralize infrastructure authority and lean on private sector involvement to manage public works. The pivot mirrors similar efforts to cut red tape and compress permitting timelines across federal agencies.

The administration has also emphasized the symbolic importance of Penn Station as a critical hub in the national transit network — and one that must reflect both efficiency and American ingenuity.

While it remains to be seen how this shift in leadership will play out on the ground, the decision signals a new chapter for one of the nation’s most ambitious transportation undertakings.

Originally reported by Sebastian Obando in Construction Dive.