The US Department of Transportation (USDOT) has announced a shift in the management of the Penn Station Reconstruction project in New York City.

Under the direction of Secretary Sean Duffy, the Federal Railroad Administration (FRA) will now oversee the initiative, removing the Metropolitan Transportation Authority (MTA), New York's metropolitan rail provider, from its leadership role.

Amtrak, which owns the Penn Station that serves more than ten million riders annually, will take the lead in the project, supported by the USDOT.

This change is expected to save taxpayers approximately $120m, according to the FRA.

Previously, the MTA was awarded a $72m Federal-State Partnership (FSP) Programme grant for the project development related to the station's reconstruction.

MTA chair and CEO Janno Lieber responded to the change stating: “The MTA’s 33rd Street Concourse project was the first major improvement to Penn Station in decades – and we finished it on time and under budget.

“Over a hundred million MTA customers – two-thirds of Penn Station’s total ridership – use the facility every year. 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.”

With the revised funding strategy, Amtrak will now seek a master developer to explore both the reconstruction and potential expansion of Penn Station.

The FRA has also announced a reduction in the federal grant allocated to Amtrak for project development, which will allow for a more streamlined approach to the station's reconstruction.

The government is advocating for a public-private partnership model for the project, aiming to leverage private sector resources and expertise to mitigate financial risks for taxpayers.

In December 2024, Amtrak selected a joint venture (JV) of Skanska, Walsh, and Herzog to handle pre-construction activities for the Sawtooth Bridges Replacement Project, which aims to enhance the Northeast Corridor (NEC) in the US.