NY Governor Cuomo announces $3 billion plan to redevelop Penn Station and the Farley Post Office, with groundbreaking slated for later this year. The two together will form the Empire Station Complex. Details here (link was too long for the link field):
https://www.governor.ny.gov/news/6th-proposal-governor-cuomos-2016-agenda-transform-penn-station-and-farley-post-office-building
Madison Square Garden will stay for now, but it sounds like the station will be majorly reworked. This announcement comes one day after Cuomo announced plans for a third track on the LIRR Main Line between Floral Park and Hicksville.