The U.S. Department of Transportation’s Federal Transit Administration (FTA) announced it would invest $166 million in American passenger rail services and infrastructure.
The Notice of Funding Opportunity will allow public transportation agencies to apply for grants to replace rail rolling stock, such as passenger rail cars and locomotives. The grants are part of the Rail Vehicle Replacement (Rail) Program created through the Infrastructure Investment and Jobs Act.
“Old and unreliable transit infrastructure is unacceptable. America is the greatest country in the world, and our families deserve a transportation network to match,” U.S. Transportation Secretary Sean P. Duffy said.
The FTA said one-third of subway and passenger rail vehicles in the United States are more than 25 years old, which contributes to delays, increased maintenance costs and customer dissatisfaction.
The FTA’s Rail Vehicle Replacement Grants provides up to 80 percent of a project to replace rail rolling stock to improve reliability, safety and convenience on the nation’s rail transit system. Officials said the grants are competitive and help fund capital revenue service, passenger carrying vehicles, or propulsion (locomotives) vehicles necessary for the provision of rail public transportation. The program is a set-aside of the State of Good Repair Formula Grants Program
In FY 2024, the agency said, the program received applications for 13 eligible projects requesting a total of $1.97 billion. Three of those projects were funded totaling $630.9 million, with funding awarded ranging from $100 million to $317 million.
Applications are due by July 6, 2026.