A stairway leading to the 34th Street and Penn Station connection in New York City.

Federal grants accelerate Penn Station redevelopment in New York

September 3, 2025

The U.S. Department of Transportation (DOT) announced an expedited timeline last week to revitalize Penn Station in New York. Along with the new development schedule, DOT awarded Amtrak an additional $43 million in federal grants to facilitate the rapid changes.

The new timeframe targets a construction start date by the end of 2027. The rest of the schedule is as follows:

  • Fall 2025 – contracting industry stakeholder engagement.
  • Late 2025 – master developer solicitation release.
  • May 2026 – master developer selection.
  • Summer 2026 – preliminary design and National Environmental Policy Act (NEPA) activities.
  • End of 2027 – start of construction.

The DOT took over the project from New York Metropolitan Transportation (MTA) in April, citing sub-standard work and the fact that Amtrak owns the station. Similarly, DOT retracted $72 million in grants from the project.

In May, DOT appointed Andy Byford to the Amtrak Board of Directors as a special advisor, responsible for overseeing the redevelopment of the station.

As part of the agency’s late-August announcement, DOT is providing Amtrak with nearly $43 million in federal funds. According to Special Advisor Byford, the funds will be used to facilitate project development and the search for a master developer, as well as supporting initial permitting and engineering work.

The redevelopment effort is intended to turn Penn Station into a more efficient, modern, safe and world-class station, according to the DOT officials. According to these federal officials, the current Penn Station has crumbling infrastructure, unnavigable hallways and no space for families. With the accelerated schedule, the project represents a significant federal commitment to modernizing critical transportation infrastructure nationwide.


Photo by Mario Spencer from Pexels

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