President Donald Trump's administration announced this week that the Department of Transportation and Amtrak will take over New York City's Penn Station reconstruction project and shave millions in taxpayer funding from its budget.
Secretary of Transportation Sean Duffy said on Thursday that the Federal Railroad Administration (FRA) will withdraw the Metropolitan Transportation Authority (MTA) from overseeing the initiative, which would overhaul the country's busiest railway station, and slash federal grants for the project by approximately $120 million. FRA Chief Counsel Kyle Fields informed MTA Chair Janno Lieber of the decision in a letter noting that Amtrak, which owns Penn Station, will oversee the work with support from USDOT.
"The necessary planning for reconstruction and expansion of Penn Station will be conducted under a single grant, led by Amtrak," Fields wrote in the letter.
"There is no reason to delegate leadership of this important project," Duffy said in his statement.
"President Trump has made it clear: the days of reckless spending and blank checks are over," Duffy added. "New York City deserves a Penn Station that reflects America's greatness and is safe and clean. The MTA's history of inefficiency, waste and mismanagement also meant that a new approach is needed. By putting taxpayers first, we're ensuring every dollar is spent wisely to create a transit hub all Americans can take pride in."
In a statement, New York Gov. Kathy Hochul touted the move as a win for the state and the result of successful negotiations between herself and Trump. She also said that the move means that "the sole responsibility" for the project lies with the federal government.
"In multiple meetings with President Trump, I requested that the federal government fund the long-overdue overhaul of Penn Station," she said. "Clearly that effort has been successful, and I want to thank the president and Secretary Duffy for taking on the sole responsibility to deliver the beautiful new $7 billion station that New Yorkers deserve. This is a major victory for New Yorkers, and the use of federal funds will save New York taxpayers $1.3 billion that would have otherwise been necessary for this project."