The U.S. Department of Transportation (USDOT) has confirmed that construction on the long-planned redevelopment of New York Penn Station will begin by the end of 2027. The project is estimated to cost $7 billion and will replace the existing underground transit hub with a 250,000-square-foot, single-level facility featuring new amenities, retail space, and mixed-income housing.
To advance the project, USDOT has awarded Amtrak a nearly $43 million federal grant. The funding will support permitting, preliminary engineering, and the solicitation of a master developer. Andy Byford, appointed in May 2025 as Special Advisor to Amtrak’s board, will lead the developer selection process. The solicitation is expected to begin by October 2025, with a decision anticipated by May 2026.
The redevelopment will be delivered as a public-private partnership. Penn Station currently serves more than 1,000 daily trains and accommodates over 200,000 passenger trips each day across Amtrak, New Jersey Transit, and Long Island Rail Road services.
Earlier in 2025, USDOT transferred control of the project from the Metropolitan Transportation Authority to Amtrak and withdrew $72 million in prior grant funding, citing Amtrak’s ownership of the facility.