Full Breakdown
MTA Chief Rejects Trump-Backed Deal for Penn Station Overhaul
6/25/2026, 8:53:50 PM
Core Event: MTA Refuses to Sign Memorandum of Agreement
Metropolitan Transportation Authority (MTA) Chairman and CEO Janno Lieber announced on June 24, 2026 that the agency will not sign the memorandum of agreement (MOA) offered by Amtrak and its special adviser Andy Byford for the $7-$8 billion renovation of Pennsylvania Station. Lieber said the agreement would erode the MTA’s lease-holder protections and “take away MTA’s authority to approve renovation work at Penn Station.”
Background & Context: Ownership, Lease Rights, and Project History
Penn Station is owned by Amtrak, while the MTA is its largest tenant, operating the Long Island Rail Road (LIRR) and subway lines that serve roughly two-thirds of the station’s 600,000 daily riders. The MTA holds a prepaid lease for the LIRR portion that extends for 160 years, granting it the right to approve any construction affecting the northern half of the facility. In April 2025 the Trump administration announced it would assume federal oversight of the long-delayed redesign, a move supported by Governor Kathy Hochul, who framed the project as a federal responsibility.
Key Figures & Groups
- Janno Lieber – MTA Chairman and CEO, author of the rejection letter.
- Andy Byford – Amtrak special adviser overseeing the redesign, former MTA executive.
- President Donald Trump – Requested $1 billion for the project in a supplemental defense funding request.
- Governor Kathy Hochul – New York governor backing federal funding.
- Sean Butler – Hochul’s spokesperson.
- Office of Management and Budget (OMB) – Issued the $1 billion earmark request.
Timeline of Recent Developments
- April 2025 – Federal takeover of Penn Station redesign announced.
- June 24, 2026 – Lieber publicly declines the MOA; Trump’s budget director Russell Vought submits a $1 billion earmark request to Speaker Mike Johnson.
- June 25, 2026 – Lieber’s scathing letter to Amtrak and the U.S. Department of Transportation is released.
- Late 2027 (projected) – Construction slated to begin if funding and agreements are secured.
Data & Statistics: Scope and Funding
- Estimated renovation cost: $7 billion–$8 billion.
- Daily ridership: ?600,000 passengers across Amtrak, LIRR, NJ Transit, and six subway lines.
- Design includes a 170,000 sq ft concourse, new Eighth Avenue entrance, and retention of Madison Square Garden above the station.
- Federal request: $1 billion earmarked for final design and construction, part of an $87.6 billion supplemental funding package.
Official Statements & Responses
The MTA emphasized its existing lease rights as sufficient to “collaborate right now” without a new document. Byford’s letter urged partnership beyond a name-only agreement. Hochul’s office highlighted the governor’s commitment to a “world-class” station delivered collaboratively. The OMB memo framed the earmark as essential to an “expedited schedule.” The Trump administration’s request to Congress seeks congressional approval for the $1 billion allocation.
Criticism & Opposition
Lieber characterized the Trump administration’s overtures as “blah-blah” and “gamesmanship,” warning against entering a “real-estate deal with Donald Trump…with no lease and no protections.” Byford accused the MTA of delaying progress, while Lieber questioned the project’s financing structure, private-partner benefits, and potential taxpayer burdens tied to Madison Square Garden improvements.
Verbatim Quotes
- “When the Trump administration announced it was taking over the reconstruction project, we were cautiously optimistic, despite the typically gratuitous (and fact-free) snipes U.S.D.O.T. and Amtrak took at the M.T.A.,” — Janno Lieber, MTA CEO
- “I’m declining to be the first person in New York real estate history to say, ‘I want to enter into a real estate deal with Donald Trump and with no lease and no protections,” — Janno Lieber, MTA CEO
- “News flash: that’s not partnership, that’s gamesmanship,” — Janno Lieber, MTA CEO
- “Let’s be partners in more than just name only,” — Andy Byford, Amtrak adviser
- “These supplemental funds, along with base resources, will ensure the project can proceed on an expedited schedule.” — Office of Management and Budget (memo)
- “Governor Hochul believes that delivering the world-class Penn Station New Yorkers deserve is too important not to work collaboratively and constructively with all partners,” — Sean Butler, Hochul spokesperson
Conflicting Reports & Gaps
Byford and the Trump administration cite a mix of federal grants and public-private partnership financing, while Hochul’s office asserts the project will be “fully federally funded.” Cost estimates range from $7 billion to $8 billion, and a separate statement from Transportation Secretary Sean Duffy referenced an $8 billion figure that the DOT later clarified as an estimate. The timeline for construction remains uncertain pending congressional approval of the earmarked funds.
What’s Next
Congress must act on the $1 billion earmark before the projected 2027 ground-break. The MTA plans to continue asserting its lease rights while negotiating any future partnership framework. Final design approvals, funding allocations, and the selection of private developers will determine whether the renovation proceeds on the “Trump time” schedule promised by the administration.
