The Transportation Department announced Wednesday that it will allocate an additional $200 million to help launch construction on the long-awaited redevelopment of New York’s Penn Station, part of a sweeping $8 billion modernization effort expected to begin by the end of next year.

According to Amtrak and the Trump administration, the project will dramatically transform the aging transit hub by increasing rail capacity, constructing a new grand entrance along Eighth Avenue, creating a modern train hall, and replacing outdated passageways with larger open concourses.

Penn Station remains the busiest transportation hub in the United States, handling roughly 10 million Amtrak passengers each year and approximately 100 million travelers overall when regional rail systems are included.

Last month, Transportation Secretary Sean Duffy announced that the department planned to direct $4.7 billion toward rail infrastructure upgrades along Amtrak’s Northeast Corridor, including improvements at Penn Station and Union Station in Washington, D.C.

“We’re going to give $8 billion to rebuild Penn Station,” Duffy said Tuesday during a Senate hearing.

The decision effectively ends the possibility that New York would relocate Madison Square Garden, which sits above Penn Station and serves as the home arena for the New York Knicks and the New York Rangers, in addition to hosting concerts and other major events.

Plans for the reconstruction also include expanded retail areas and a redesigned exterior intended to give the station a more classical architectural appearance.

New York previously unveiled the $1.6 billion Moynihan Train Hall project in 2021, opening a large new concourse inside the former Farley Post Office building across Eighth Avenue from Penn Station.

The 255,000-square-foot Moynihan Train Hall features a massive glass skylight rising 92 feet overhead, as well as amenities including a lounge for nursing mothers. The facility provides access to 17 Amtrak and Long Island Rail Road tracks.

Meanwhile, the Trump administration has continued facing legal setbacks regarding the separate $16 billion Hudson Tunnel Project. Federal courts have ordered the Transportation Department to continue funding the project after administration officials attempted to halt payments.

The Hudson Tunnel Project is designed to construct a new commuter rail tunnel linking Manhattan and New Jersey while also rehabilitating the century-old existing tunnel currently used by more than 200,000 passengers and 425 trains every day.

The current tunnel sustained extensive damage during Hurricane Sandy in 2012 and now requires repeated emergency maintenance, causing disruptions along the nation’s busiest passenger rail corridor.

{Matzav.com}