Feds Select Halmar-Skanska Team to Lead $8B Penn Station Overhaul
The Trump administration and Amtrak announced on May 20, 2026, that Penn Transformation Partners—a joint venture of construction firms Halmar International and Skanska—has been selected to lead the redesign and reconstruction of New York's Penn Station. Secretary Sean Duffy said the project was taken from the MTA in April 2025 due to delays and cost overruns. The new plan includes a grand entrance on Eighth Avenue, expanded track capacity, and improved concourses while keeping Madison Square Garden in its current location. The federal government is pledging eight billion dollars toward the transformation, with an additional two hundred million announced for design and permitting work. Construction is expected to begin by the end of 2027. Governor Hochul stated New York will not contribute funding but said the state will monitor that the project meets specific criteria for riders and taxpayers.
Key facts
- Federal government pledging $8 billion to Penn Station reconstruction with additional $200 million for design and permitting
- Penn Transformation Partners (Halmar and Skanska) selected on May 20, 2026 as master developer after competitive procurement
- Trump administration took control of project from MTA in April 2025, citing delays and mismanagement
- Madison Square Garden will remain in its current location with classical-style exterior cladding rather than relocation
- Groundbreaking targeted for end of 2027; project scope includes expanded track capacity, new Eighth Avenue entrance, and improved concourses
- Penn Station serves 600,000 passengers weekday across Amtrak, NJ Transit, and Long Island Rail Road
- Governor Hochul stated New York will not contribute state funding to the project
How different outlets framed it
Left-leaning coverage: Progressive sources highlight concerns about the secretive procurement process led by Amtrak and Andy Byford, with local officials calling it a "secret process" conducted without transparency. Critics, including the Riders Alliance transit advocacy group, argue the focus is on credit-taking rather than service quality. Left-leaning outlets note the MTA's previous plan was cheaper and question whether the federal government will ultimately expect New York to pay, pointing to precedent of federal agencies passing costs to local agencies.
Right-leaning coverage: Conservative and pro-Trump sources, including the Washington Examiner and official USDOT statements, emphasize the administration's success in breaking gridlock and accelerating timelines. They highlight the decision to forego relocating Madison Square Garden as evidence of pragmatic deal-making that respects local interests while moving forward. The framing emphasizes federal efficiency, citing the $120 million saved by replacing the MTA and celebrating the rapid pace of milestone achievement under "Trump Time."
Limits of this briefing
Limited design details have been released publicly, with observers noting the procurement process lacked transparency. Full project costs and final timeline remain subject to permitting and contract negotiations. The degree to which the final design will improve operational capacity versus aesthetic improvements remains uncertain, and concerns persist about whether state or local agencies may eventually bear additional costs.
Sources
- Amtrak Media: Penn Station Update: Trump's Transportation Secretary Sean P. Duffy & Amtrak Announce Penn Transformation Partners Right
- Gothamist: Feds Pick Design for Penn Station Rebuild, Won't Move Madison Square Garden Left
- U.S. Department of Transportation: Penn Station Update: Secretary Duffy & Amtrak Announce Master Developer Right
- Washington Examiner: DOT and Amtrak Pick 'Master Developer' to Lead $8 Billion Penn Station Renovation Right
- Engineering News-Record: Halmar, Skanska Advance Penn Station Rebuild as Delivery Phase Begins Centre