The MTA is signaling that it could become a major obstacle to the Trump administration’s effort to overhaul Penn Station, with Chair Janno Lieber warning that the Long Island Rail Road’s longstanding rights inside the Manhattan train hub give the authority significant leverage over any reconstruction plans.
In a Monday evening response to Amtrak special adviser Andy Byford, Lieber pointed to the MTA’s control over key portions of the station and said the authority has a duty to protect both riders and state taxpayers as federal officials and Amtrak move ahead with the long-stalled redevelopment.
“The MTA’s Long Island Rail Road and the MTA’s subways carry two-thirds of the daily users of Penn Station,” Lieber wrote. “Even more important, the LIRR has a prepaid lease running for another 160 years (through 2186) that gives us approval rights for any construction within or affecting the northern half of the station.”
“Even alterations outside our space may not ‘unduly burden train operations’ or ‘affect the structural integrity’ of our leasehold,” he added.
The message, obtained by Gothamist, was sent less than 12 hours after Byford renewed the MTA’s invitation to become a “fully involved” partner in the Penn Station reconstruction. Instead, Lieber sharply criticized the way the federal government and Amtrak have handled the process, calling the oversight of the project “bizarre” and saying it has “the appearance of impropriety.”
The exchange offers one of the clearest looks yet at the MTA’s resistance to the Penn Station redevelopment since President Donald Trump removed oversight of the project from the state authority last year and handed it to Amtrak, which owns the station. Lieber has largely avoided public comment on the process since the MTA lost control of the work.
The dispute also reflects a central argument made by supporters of the federal takeover that past efforts to rebuild Penn Station repeatedly stalled because the station’s major rail users, Amtrak, the MTA and NJ Transit, have conflicting interests and have often struggled to agree on a single path forward.
The station has been the subject of failed or abandoned renovation proposals for decades, with one New York Times critic describing the new federal role as potentially significant because Amtrak, as the station’s owner, is now leading the effort rather than leaving the project to its tenants.
Byford’s Monday letter described several attempts to get the MTA to sign a “memorandum of agreement” on the project and noted that NJ Transit had already joined as a partner. But Lieber dismissed that account, writing that “there’s no point in rebutting all the blah-blah” about the discussions. He said the MTA would continue to rely on its existing lease rights governing operations in the train hall.
Lieber also accused Byford and Amtrak of “gamesmanship” for releasing Byford’s initial letter publicly.
“I have your letter dated today — the handling of which, unfortunately, belies the protestations of good faith it contains. The letter was sent to me [Monday] at 7:31 a.m. — after press articles detailing its leaked contents had already been published. News flash: that’s not partnership, that’s gamesmanship.”
Amtrak last month selected a “master developer” to manage the reconstruction. This project aims to address decades of complaints about Penn Station’s cramped layout, low ceilings, dim corridors and poor rider experience. The selected design calls for a grand new entrance on Eighth Avenue, tens of thousands of square feet of natural light, higher ceilings in areas long criticized as claustrophobic, and bronze and stone finishes.
The plan’s principal architect, Vishaan Chakrabarti, has described the proposed concourse as a roughly 450-foot civic space, while supporters have framed it as a way to give Penn Station a more legible, dignified layout rather than the confusing network of corridors riders navigate today.
The proposal does not add tracks to the station. Still, backers argue that adding more access points to platforms could make boarding and exiting trains safer and less congested, potentially reducing some delays caused by crowding.
Supporters of the plan have also argued that rebuilding Penn Station would not prevent longer-term changes some transit advocates have pushed for, including through-running service between New Jersey and Long Island or the eventual relocation of Madison Square Garden.
Byford has said the planned reconstruction would not disturb the new Seventh Avenue entrance or the 33rd Street concourse built under Lieber’s direction over the last decade. But Lieber’s response raised concerns about how any construction could affect LIRR operations, particularly given the railroad’s rights in the northern half of the station.
Lieber questioned the project’s financial status, noting that it still lacks an official cost estimate and an identified funding source. U.S. Transportation Secretary Sean Duffy has recently pledged to secure billions of dollars in federal funding and loans for the project. He has estimated the total cost at between $7 billion and $8 billion.
Despite his objections, Lieber said the authority was not refusing all contact with Amtrak. He wrote that the MTA is “of course open to engaging with Amtrak, but without conditions.”
“Our duty is to protect the interests of thousands of MTA riders at Penn Station — and those of New York state taxpayers, who Amtrak and your chosen developer keep mentioning as potential funders.”
The financing questions extend beyond federal support. There are unresolved questions about what the private development partner would contribute financially, what role it would play in maintaining the rebuilt station and whether NJ Transit would help pay for the work.
The debate also comes after New York spent billions of dollars upgrading the region’s airports, even though Penn Station serves more daily passengers than those airports and carries a less affluent ridership overall, a comparison some supporters see as an equity argument for investing in the rail hub.
The MTA chair further scrutinized the extent to which the redevelopment could benefit Madison Square Garden owner James Dolan. Amtrak’s proposal would require the purchase and demolition of the Infosys Theater to create the planned Eighth Avenue entrance, raising questions for Lieber about who would stand to gain from the station redesign.
Lieber’s letter also took aim at the selection process itself, including the Trump administration’s role in choosing a design. Gothamist previously reported that sources close to the process said Trump would have the final say in selecting the winning plan.
One point of concern for Lieber was Halmar, the construction firm chosen to lead the project. Halmar also does work with the MTA, and Lieber questioned whether political connections played a role in the procurement process.
“Did their (Halmar’s) executives’ close ties to the Trump administration influence the course for the procurement?” Lieber wrote, likely referring to company executive Peter Cipriano, who previously worked for the federal Department of Transportation during Trump’s first term.
Lieber also asked what would become of the project if Trump’s “interest fades and nothing comes of it?” Amtrak spokesperson Jason Abrams said in a statement that the agency’s Monday letter “speaks for itself.”
“We are committed to improving the entirety of Penn Station for New Yorkers, and it’s unfortunate MTA does not seem to share that approach,” Abrams said. “We will continue to act in good faith and keep the invitation open to be collaborative partners so they can provide an even better experience for their customers.”
Byford’s role has also become part of the political framing around the project. While the plan is closely tied to Trump’s intervention, Byford is widely viewed in New York transit circles as an experienced transportation official, a factor supporters cite when arguing that the proposal should not be dismissed solely on partisan grounds.
Byford and federal officials have set an aggressive goal of starting construction by the end of 2027. Before that can happen, Amtrak will need to settle questions over funding, project authority and agreements with key parties whose operations depend on the station.
In his original letter on Monday, Byford said Amtrak would move ahead with the Penn Station redevelopment regardless of whether the MTA agrees to join as a partner.
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
