Trump Administration Approves $8 Billion Plan to Redesign Penn Station

The Trump administration and Amtrak approved a plan Wednesday to redesign Penn Station that keeps Madison Square Garden in place. The federal government pledged $8 billion for the overhaul of the station, which officials described as the nation's busiest commuter rail hub.

Halmar/Penn Transformation Partners was chosen as the master developer for the project. Officials said the firm will release its construction design in the coming months, with groundbreaking expected by the end of 2027.

The redesign includes a new grand entrance on Eighth Avenue, replacement of existing walkways with open concourses, expanded track capacity, and new retail space. Madison Square Garden will remain linked to the station, with improvements planned for passenger experience there.

Some earlier proposals had called for moving the arena across Seventh Avenue. The owner of Madison Square Garden opposed relocation.

The federal government took over the project after years of delays. Officials said the selection of a developer marks progress toward a completed redesign. "When it comes to our rail, we're making generational improvements to the Northeast Corridor," a transportation official said during Senate testimony Wednesday.

" "We took over the transformation of New York Penn Station because the project was behind schedule, over budget, and hopelessly mismanaged," the same official said. " "In selecting Penn Transformation Partners (Halmar) and their innovative plan, we are one step closer to delivering a world-class travel hub that daily commuters and travelers have dreamed of for decades," the official added.

"Under President Trump's historic leadership, the days of Penn Station's cramped hallways, broken infrastructure, and snarled rail lines are numbered," the official said. " A former transit official who advised Amtrak on the bidding process said the agency is excited to move forward.

"Everyone at Amtrak is thrilled to announce Penn Transformation Partners (Halmar) and even more excited that the project is one step closer to having shovels in the ground next year," the advisor said. "The rapid completion of a rigorous procurement process represents more than just delivering on a highly ambitious milestone," the advisor added.

" State officials welcomed the announcement. "From the day I took office, I made reimagining Penn Station a priority," a state official said. " "Last year, I took my case directly to the White House to cut through red tape and secure full federal funding for delivery of this project, saving New York taxpayers over $1 billion and accelerating this long overdue transformation," the state official continued.

"To be successful, this project must accomplish two things: dramatically improve the experience for every rider who passes through Penn Station, from the A train to the Acela, while protecting the record performance of the LIRR and ensuring the costs are not borne by New York commuters or taxpayers," the state official said.