USDOT, Amtrak, Halmar/Skanska JV Unveil Penn Station Redevelopment Design Plan

NEW YORK–Penn Transformation Partners (PTP) unveiled on June 8 the design renderings for the redevelopment of New York Penn Station. PTP—a joint venture led by Halmar and Skanska—will serve as the master developer for the project.

The redesign will transform Penn Station from the tracks to the street level, creating a more efficient, cleaner, and functional experience for more than 600,000 daily commuters and millions of visitors. PTP’s vision will make the station safer, more spacious, and better connected, while elevating it into a modern civic landmark. Madison Square Garden will remain in place, and throughout construction, the arena and all railroads will continue to operate. Breaking ground by the end of 2027, the transformation of Penn Station will be 100% union-built, creating thousands of jobs and supporting local and regional economic activity.

The U.S. Department of Transportation took control of Penn Station’s transformation in April 2025, providing Amtrak with $43 million in federal grant funding to jumpstart an aggressive schedule. In May 2026, PTP was selected as the master developer, and US DOT invested an additional $200 million to support design and permitting work.

The completed station is expected to transform the commuter and visitor experience at Penn Station with a design that reduces congestion, eliminates dead ends, improves visibility and expands waiting areas evenly throughout the station, according to the announcement.

The single-level, ADA-compliant concourse of stone and bronze with soaring ceilings will consolidate all public activity on a single level above the platforms. It will feature best-in-class amenities, bars and restaurants, shops, and customer services on one clear, accessible level.

Penn Transportation Partners announced the new transit hub will be paid for mainly through federal grants to Amtrak, federal loans, private financing and additional equity raised by PTP. USDOT said it will spend $5 billion to revitalize Amtrak’s Northeast Rail Corridor and hubs, which include Penn Station.

Specifically, the redevelopment of New York Penn Station will:

  • Construct a grand entrance on Eighth Avenue to a new train hall
  • Replace cramped, decrepit walkways with open, beautiful concourses
  • Expand track capacity, including the introduction of at least limited through-running on the regional rail network
  • Enable new retail, better wayfinding, and other passenger experience improvements, all while maintaining the iconic Madison Square Garden with a new cladding for a classic look, and
  • Improve the station’s existing subterranean structure.

The project will be funded primarily through federal grants to Amtrak, together with federal loans, private financing, and equity raised by PTP. USDOT is investing nearly $5 billion into Amtrak’s Northeast Rail Corridor to revitalize the nation’s major rail hubs, including Penn Station.

“Today’s announcement marks another important step toward delivering the modern, world-class Penn Station that New Yorkers deserve,” said Gary LaBarbera, president, Building and Construction Trades Council of Greater New York. “Transforming one of the nation’s busiest transit hubs will improve lives for commuters while creating thousands of family sustaining middle-class careers, generating economic activity, and investing in infrastructure that will strengthen our region for decades to come.”

Published: June 18, 2026.

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