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Feds pick design for Penn Station rebuild, won't move Madison Square Garden
By
Ramsey Khalifeh
Published May 20, 2026
Modified May 20, 2026
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Courtesy Halmar
By
Ramsey Khalifeh
Published May 20, 2026
Modified May 20, 2026
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Penn Station would be rebuilt into a spacious, light-filled train hall without relocating Madison Square Garden under a plan approved by Amtrak and the Trump administration on Wednesday.
Amtrak announced it selected a group called Penn Transformation Partners as the “master developer” to oversee the redesign and reconstruction of the busiest train station in the country. The group includes real estate company Vornado, which owns much of the land around Penn Station, and construction company Halmar, which is currently working to build the MTA’s Second Avenue subway extension into East Harlem.
The announcement represents the biggest step forward in the rebuild of the notoriously dreary transit hub since the Trump administration took control of the project from the MTA last year. If realized, the plan would be a transformative upgrade. Since the original Beaux-Arts Penn Station was torn down in the 1960s, it’s been an eyesore and inconvenience for millions of commuters who have struggled to navigate its dark and dingy corridors.
President Trump has said he wants shovels in the ground for the redesign of Penn Station by the end of 2027.
Mitchell Layton/Getty Images
Amtrak officials said the plan would upgrade the exterior of Madison Square Garden with a “classical look,” add a new glass entrance on Eighth Avenue by removing the Theater at The Garden and knock out levels in the train hall’s interior to raise its ceilings. The federal railroad said the redesign would also create opportunities for new retailers and give commuters an easier walk around the station.
Gothamist previously reported that bidders were required to be “cognizant” of an executive order that encourages the use of classical architecture in their design. The original Penn Station, which opened in 1910, was regarded as an architectural masterpiece with high ceilings and marble columns before it was demolished.
In Wednesday’s announcement, Amtrak said the winning design “takes inspiration from this lost architectural gem while fitting with the major structures there currently.”
The plan would also overhaul the way trains move in and out Penn Station. Amtrak officials said the plan will expand track capacity by allowing “at least limited” NJ Transit and Long Island Rail Road trains to “through-run” instead of stopping at Penn Station and turning around. The idea has been pitched by transportation planners for decades, and officials estimate it would expand the station’s capacity by allowing trains to continue through Penn.
In the new announcement, the federal transportation department said the Federal Railroad Administration will spend $200 million on “critical design and permitting work” on Penn Station ahead of construction.
Versions of the Penn Transformation Partners plan have been floated by Halmar since 2022, when the MTA was still leading the reconstruction effort.
The cost of the project remains unclear. During a Senate hearing on Tuesday, U.S. Transportation Secretary Sean Duffy testified that the Trump administration planned to put up $8 billion for the rebuild. Since the feds took over the project from the MTA, Gov. Kathy Hochul has said New York state won’t contribute any funding for the effort.
A rendering released in 2023 by Halmar of a new entrance to Penn Station.
Halmar
President Donald Trump has ordered Amtrak to break ground on the construction effort by the end of 2027.
“The days of Penn Station’s cramped hallways, broken infrastructure, and snarled rail lines are numbered,” Duffy wrote in a statement. “2027 can’t come soon enough.”
The effort also means Madison Square Garden would remain in its place above the train hub. Another proposal backed by Trump mega-donor Thomas Klingenstein called to move the “world’s most famous arena” across Seventh Avenue to make way for an above-ground train hall designed with Greco-Roman columns and classical architecture.
The MTA in 2022 commissioned two firms to work on a redesign of the station. The agency split the plan's $74 million cost with NJ Transit and Amtrak, but it was abandoned after the Trump administration took control of the station.
"While Penn is a federal asset, New York spent years trying to move this project forward, only to face significant federal bureaucratic hurdles at nearly every step," Hochul wrote in a statement. "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."
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manhattan
transportation
Ramsey Khalifeh
Ramsey Khalifeh is a transportation reporter on the NYC Accountability desk covering the largest transit system in the country. He was previously a general assignment reporter at Gothamist and worked on the Boston Globe's metro and copy desk. Got a tip? Email [email protected]
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