NEW YORK CITY (WABC) -- New York had big plans for the renovation of Penn Station, but now the Trump administration says it is taking over the $7 billion makeover.
Transportation Secretary Sean Duffy says his agency will save taxpayers more than $100 million.
While Governor Kathy Hochul has found herself at odds with President Trump in the past, on this issue, she said the federal government's involvement is a 'win' for New York.
Transportation Secretary Sean Duffy told the MTA that the Federal Railroad Administration will replace the agency with Amtrak, the owner of Penn Station.
Duffy accused the transit agency of "inefficiency, waste and mismanagement."
"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," Duffy said.
Tom Wright, the President of the Regional Plan Association, says it may be less about politics and more about progress, especially with the Gateway Tunnel project underway.
"When the gateway tunnels are fully completed and then the old north river tunnels are rehabilitated, which is more than a decade down the road, we're going to need to have expanded tracks and platforms to handle the new trains coming in," Wright said.
Governor Kathy Hochul is calling the move a win, after state plans to renovate have been slowed since first proposed in 2023.
"This place hasn't really changed, you know, in a while. So federal funding might not be a bad thing for the station," said commuter Dustin Demarsico.
Governor Kathy Hochul is now calling the takeover a win.
"This is a major victory for New Yorkers, and the use of federal funds will save New York taxpayers $1.3 billion dollars that would have otherwise been necessary for this project," Hochul said in a statement.
But to finish the job, the federal government would need to bring in private partners.
One proposal from the Grand Penn Community Alliance would move Madison Square Garden. The group says it's had productive talks with the Trump administration in recent weeks.
MTA officials point out the agency recently delivered on a brand new 33rd Street concourse.
While the feds may be in charge now, the MTA still expects a seat at the table if and when plans move forward.
Not all commuters are convinced the Trump administration will follow through.
"There's no indication that he can focus for more than 15 minutes on anything," commuter Lauren Wilkinson said.
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