Penn Station cash grab? Federal bill amendment may let Trump admin finance hub's development with local tax dollars | amNewYork

A proposed amendment to the BUILD America 250 Act would allow Amtrak to use local tax revenues to fund major intercity passenger rail station overhauls, including the Penn Station redevelopment. The amendment would authorize Amtrak to acquire, develop, and leverage property near intercity passenger rail stations, including through partnerships with private-sector entities. It would also clarify federal treatment of such property to facilitate and expedite private investment supporting passenger facilities. The measure advanced in the U.S. House Transportation and Infrastructure Committee and still requires further House and Senate approval before reaching the president for signature. The Penn Station project is tied to a master developer selection involving Penn Transformation Partners, including Vornado, and follows federal control changes in April 2025.

"The amendment would allow Amtrak to draw funding for major rail station overhauls, such as the Penn Station redevelopment, from local tax revenues and to bypass local zoning rules, according to experts. The amendment text says it would: authorize Amtrak to acquire, develop, and leverage property in the vicinity of intercity passenger rail stations, including in partnership or other arrangements with the private sector, and to clarify the Federal treatment of such property to facilitate and expedite needed private investment that supports passenger facilities including rail stations."

"The measure passed the bipartisan U.S. House's Transportation and Infrastructure Committee last Friday as an amendment to the BUILD America 250 Act a five-year surface transportation reauthorization bill funding roads, bridges, transit, and rail transportation accross the country. The bill still has a ways to go before becoming law, as it must pass the Senate and the House once more, before heading to President Trump's desk for his signature."

"The amendment passed just hours after the Trump administration announced it chose Penn Transformation Partners a group that includes developers Halmar and Skanska as well as the real estate firm Vornado as the project's master developer. Vornado owns much of the land surrounding Penn Station. The announcement resulted from a year-long selection process that took place largely out of public view and where President Trump reportedly made the final decision."

"The U.S. Department of Transportation and Amtrak wrested control of the project from New York state and the MTA in April 2025."

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