New York Penn Station Reconstruction Will Start in 2027, USDOT Says

Amtrak and NJ Transit trains are seen in New York Penn Station — Photo cropped from the original by Fan Railer/ CC BY-SA 4.0

U.S. Dept. of Transportation officials say Amtrak will begin seeking a master developer this fall to begin construction of a Penn Station overhaul by the end of 2027.

The U.S. Dept. of Transportation plans to begin construction on a project to overhaul New York City’s Pennsylvania Station in 2027, DOT officials announced Aug. 27.

DOT plans to begin stakeholder engagement with contractors this fall, and then release a solicitation for a master developer later this year, according to a schedule the agency provided. Officials plan to select a master developer by the end of May 2026. That would be followed by preliminary design work and permitting from the summer of 2026 through the end of 2027, along with the start of construction by the end of 2027.

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“Crumbling infrastructure, bleak and dirty architecture, unnavigable hallways and no inviting spaces for families with kids—the current state of Penn Station is unacceptable,” U.S. Transportation Secretary Sean Duffy said in a statement.

New York’s Metropolitan Transportation Authority had been planning a $7-billion rebuild of the Amtrak-owned train station, which also serves NJ Transit and Long Island Rail Road passengers. But in April, DOT announced that it was moving authority over the project to Amtrak and canceling a $72.5-million grant to MTA because federal officials did not believe MTA capable of leading the effort.

The move came amid an ongoing dispute between DOT and New York officials over the city’s congestion pricing program, but city and state leaders expressed support for DOT’s plan. Following the schedule announcement, Gov. Kathy Hochul (D) said in a statement that the federal involvement allowed New York to reallocate more than $1 billion to other projects.

“With Secretary Duffy now advancing this project and requesting design proposals, New Yorkers are one step closer to a station worthy of this great city,” Hochul said.

In May, DOT brought on British transit executive Andy Byford as a special advisor to the Amtrak board of directors to lead the redevelopment. Byford, who was already serving as a senior vice president at Amtrak, was also previously MTA’s president of New York City Transit.

“The transformation of New York Penn Station is underway, and USDOT and Amtrak are strongly committed to beginning construction by the end of 2027,” Byford said.

DOT will provide Amtrak with a $43-million grant to support project development and the master developer procurement.

James Leggate is an government news correspondent at ENR. He has reported on a variety of issues for more than 10 years and his work has contributed to several regional Associated Press Media Editors and Murrow award wins.