Hey, Mags!
You can email Fulbrightorientation@iie.org to ask about travel to the PDO.
I think you can fly to wherever you want - when you select the flights on the HRG/Concur site, there is a place to add a note if your proposed itinerary doesn't comply with all the Fulbright rules. I think you could just mention that the cost of flying to NY is substantially lower and that you will take a train at your own expense. However, if you plan to spend time in NY before (or after) the PDO, I think you will need special permission.
Here's the information from the PDO website:
"For current grantees, if you will be abroad during PDO, your international flight itinerary will be reviewed for approval prior to booking. You must submit your proposed itinerary through the HRG/Concur travel site for approval. Please note that IIE will only cover the cost of a flight up to $1,000, and any additional cost beyond $1,000 will be the responsibility of the grantee and is not eligible for reimbursement. If your flight is over $1,000 and it is approved, you will be required to call HRG/Concur to provide a credit card for the balance of the flight cost over $1,000. International flights that are under $1,000, and approved by IIE, will not require calling HRG/Concur.
Reimbursement forms will be available at the orientation. Flights must be Fly America Act compliant to be eligible for reimbursement. Please note:
Travelers must fly into and out of the United States on U.S.-flag carriers; a foreign carrier may be used for travel between two points abroad;
A code-share flight qualifies as a U.S.-flag carrier provided the ticket identifies the U.S. carrier’s code and flight number;
International itineraries are subject to approval by IIE."