MTA chief Lieber wary of Penn Station deal with Trump admin

By the Editorial Team · Thursday, June 25, 2026

MTA Chair Janno Lieber declined to sign a federal memorandum of agreement making the agency a “full partner” in the Penn Station redevelopment, citing concerns that the deal would undermine the MTA’s existing lease rights with Amtrak and compromise its control over the project. His refusal highlights ongoing tensions over federal-state collaboration and fiscal commitment, raising uncertainty about the plan’s future amid political distrust.

Janno Lieber, chairperson of the Metropolitan Transportation Authority (MTA), expressed reservations on Wednesday about the federal government’s proposed agreement to participate in the Penn Station redevelopment plan, citing concerns about the Trump administration’s handling of transit projects and the terms of the offer.

Lieber declined to sign on to a memorandum of agreement that would make the MTA a “full partner” in the plan led by the federal government and Amtrak. The MTA, which operates the Long Island Rail Road (LIRR) and is the station’s largest tenant, has resisted the agreement since last year, asserting that its existing lease with Amtrak—valid through 2186—already guarantees it a role in the planning process.

“The offer they made basically reduces us to at-will employees of the federal administration,” Lieber said, adding that such a deal does not serve the interests of New Yorkers. He reiterated the agency’s willingness to collaborate with Amtrak and review plans but emphasized that the MTA did not want to surrender rights enshrined in its lease.

Earlier correspondence between Lieber and Amtrak Special Advisor Andy Byford highlighted tensions over the agreement. Byford, who was appointed by the Trump administration as a “Penn Station czar,” sent a letter on Monday urging the MTA to sign the memorandum, stressing that it was a standalone agreement that would not diminish the LIRR’s lease rights.

Lieber responded by defending the MTA’s existing contractual rights and questioned the federal process for selecting a master developer, the project’s funding, and the administration’s commitment to completing the overhaul. “We have chosen to proceed cautiously given current circumstances,” he said.

At an MTA board meeting, Lieber used an analogy to explain his concerns: comparing the lease to a landlord-tenant relationship, he said the proposed deal would allow the landlord to unilaterally make major decisions without tenant approval. He suggested that agreeing to the new terms would mean forfeiting the protections the MTA currently holds under its lease with Amtrak.

Amtrak maintained that the memorandum of agreement is intended to benefit the MTA and would not restrict its lease rights. Byford stated that the federal plan would not alter the LIRR’s existing concourse and emphasized that the project would proceed whether the MTA signed the agreement or not.

Lieber countered by recalling instances during the Trump administration when the federal government withheld promised funds for Phase 2 of the Second Avenue Subway and tried to undermine a congestion-pricing agreement in New York City despite existing contracts. These actions reinforced his skepticism about entering into a binding agreement without robust protections.

Despite his respect for Byford, a former MTA official, Lieber declared he was unwilling to be the first to agree to a deal that, in his view, compromised the MTA’s legal standing and control over the LIRR’s role at Penn Station. The ongoing negotiations reflect broader concerns about federal-state cooperation on major infrastructure projects amid political uncertainty.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.