Amtrak and Penn Transformation Partners (PTP) have finalized a pre-development agreement (PDA) for the overhaul of New York Penn Station. During the PDA phase, Amtrak, led by Special Advisor Andy Byford, and PTP, will finalize the project’s design and gather stakeholder input, which will then inform and establish a firm, fixed price to deliver the work. Amtrak notes the project is moving ahead on schedule and will break ground by the end of 2027.

Since 2024, the Penn Station Working Advisory Group—comprising more than 50 organizations representing local stakeholders, community groups, transit riders, elected officials and partner commuter agencies—has provided ongoing guidance to ensure the new Penn Station reflects the needs and priorities of the 600,000 daily commuters and millions of visitors. The PDA phase will run from summer 2026 through 2027, which will include Amtrak and PTP conducting robust community engagement and provide ample opportunities for public comment.

“The momentum continues to transform New York Penn Station and having a renowned partner in PTP officially onboard ensures the project will progress even further and faster while maintaining our record of meeting all deadlines on schedule,” Byford said.

According to Amtrak, the project is estimated to cost between $7 billion and $8 billion, with the final costs determined during the PDA phase. Byford has stated there will be no fare hikes or surcharges passed on to New Jersey Transit, the Metropolitan Transportation Authority or Amtrak riders to pay for this project. The project will be funded primarily through federal funding, private financing and equity raised by PTP.

“This agreement is another major step toward reimagining Penn Station as the transit hub that travelers, visitors and New Yorkers have long deserved,” said PTP CEO Peter Cipriano. “Now, we will move forward as quickly and efficiently as possible to advance the design, establish a clear path to construction and ensure the station reflects the needs of riders and the community. Thanks to our strong partnership with the Trump Administration, U.S. Department of Transportation (USDOT) and Amtrak, we are moving this once-in-a-generation project from vision to reality. We look forward to delivering a new Penn Station that will become a civic landmark and transit hub that is safer, more spacious, and better equipped to serve the growing needs of this region for decades to come.”

Amtrak notes a final cost has not been determined for the project, but cost control measures are already in place. The PDA phase costs are strictly capped before the final construction price is locked in.

“Executing the pre-development agreement marks an important milestone for the Penn Station Transformation Project and advances our partnership with Amtrak and the U.S. Department of Transportation,” said PTP Chief Commercial Officer Magnus Eriksson. “This agreement allows us to begin the collaborative planning and development work that will help lay the foundation for a modernized Penn Station, improving the experience for millions of passengers and supporting the long-term transportation needs of New York City and the Northeast Corridor. With extensive experience delivering complex transportation and infrastructure projects, we are honored to work alongside our partners to help transform one of the nation’s most important transit gateways and look forward to the work ahead.”

To date, Amtrak notes the USDOT has invested $243 million to support the early stages of the project. In addition, USDOT is investing nearly $5 billion into Amtrak’s Northeast Rail Corridor to revitalize the nation’s major rail hubs, including Penn Station.

The new Penn Station will feature a single-level concourse with amenities, bars, restaurants, shops and customer services. The plan also includes new entry points and passenger pick-up and drop-off locations, the elimination of loading and unloading at 31st Street and 8th Avenue and upgraded surrounding streets and sidewalks to improve the pedestrian experience. The project will:

• Replace walkways with open concourses.
• Expand track capacity, including the introduction of at least limited through-running on the regional rail network.
• Enable new retail, making it easier for visitors to move around and deliver other passenger experience improvements.
• Upgrade the station’s existing subterranean structure by removing columns at the track and platform level and improving lighting, signage and passenger circulation.  

As part of the PTP, Halmar and Skanska are 50-50 development partners and 45-55 construction partners on the project. Amtrak notes the project will be 100% union-built.