In an effort to reassess the future of transportation in the city, Paterson addressed the issue of population. "If we are to realize our full potential for growth in the 21st century, then we must look to increase our rail capacity," he said. "That is why today I have outlined the conditions that I believe must be met if we are to move forward with the Moynihan Station project. Moynihan must be more than a beautiful station; it must move more people more efficiently."

The governor enumerated three conditions under which the project could be pursued by the state of New York:

• Ensuring that the Moynihan Station project increases transportation capacity by physically expanding the number of tracks and platforms and instituting operational changes by Long Island Railroad, New Jersey Transit and Amtrak.
• Coordinating the development of Moynihan Station in tandem with other major development projects including New Jersey's Access to the Region's Core, which is the first crossing under the Hudson in 50 years.
• Taking necessary steps to ensure that the project also helps to revitalize the surrounding community.

The Moynihan Station project is planned to be two parts. The websiteMoynihan Station.org describes it as "a brand-new, state-of-the-art facility on the existing Penn Station/Madison Square Garden site and a renovated Farley Post Office building that will house more train station facilities and a new Madison Square Garden arena." The project has inspired much discussion, but has yet to come to fruition. The former governor Eliot Spitzer was a proponent of the station project, calling for it earlier this year at another NYBC. The project has stalled recently with the added components of moving Madison Square Garden causing the price tag to balloon from $900 million to $3 billion. Cablevision announced earlier in the year that MSG will not move to Farley Post office, but will undergo a renovation instead.

Former New York senator Patrick Moynihan proposed the project in the early 1990s and advocated it until his death in 2003. Then Gov. George Pataki and Senator Charles Schumer took up the mantle and decided to rename the project after the late senator.