FTA Announces $631 Million for New Railcars; Support U.S. Manufacturing

FTA has announced $631 million in grants to improve safety and reliability for passengers through the purchase of new American-made rail cars. This investment, a part of President Biden’s Investing in America agenda, will improve transportation systems across the U.S. while creating good-paying jobs and boosting economic competitiveness.

The grants, through FTA’s Rail Vehicle Replacement Program, will help public transit agencies in Chicago, Philadelphia, and Baltimore replace older vehicles with 300 new railcars, making transit safer, opening new opportunities for people with disabilities, and modernizing their transit systems. Read more here.

“Millions of Americans use subways, commuter rail, and light rail every day, but many railcars are decades old and in need of replacement,” said U.S. Transportation Secretary Pete Buttigieg. “Through President Biden’s infrastructure law, we’re proud to deliver 300 new railcars to give Americans a safer, more comfortable, more reliable service on America’s rails.”

One-third of subway and commuter rail vehicles in the U.S. are more than 25 years old, and these older railcars contribute to delays, increased maintenance costs, and customer dissatisfaction. Older railcars also lack amenities, such as digital signage and audio tools that improve the riding experience and access and may also lack direct access for people with disabilities.

“Newer, better railcars will mean a safer, more reliable, more accessible transportation future for the people of these communities,” said FTA Administrator Nuria Fernandez. “These cars also represent hundreds of jobs in American factories, building the next generation of American transit. We are proud to select these projects to improve passenger rail service for riders across the nation.”

All railcars purchased with federal funding, including through this program, must comply with the Buy America Act. At least 70 percent of the railcar must be made in the U.S. and final assembly must be completed in the U.S.

This is the second Rail Vehicle Replacement Program package funded by President Biden’s Bipartisan Infrastructure Law, which has now invested approximately $1.3 billion to replace rail vehicles nationwide. Overall, the Bipartisan Infrastructure Law invests a total of $1.5 billion in new funding for railcar replacement through FY26.