The Federal Transit Administration (FTA) has awarded $631 million in grants through the Rail Vehicle Replacement Program to improve rail transit safety and reliability for passengers through the purchase of new American-made rail cars.
The funding will help transit agencies in Chicago, Ill., Philadelphia, Pa., and Baltimore, Md., replace older vehicles with 300 new railcars.
“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. Department of Transportation Secretary Pete Buttigieg. “Through President Biden’s Bipartisan Infrastructure Law, we’re proud to deliver 300 new railcars to give Americans a safer, more comfortable, more reliable service on America’s rails.”
The selected Rail Vehicle Replacement Program projects are:
- Chicago, Ill.: Metra will receive $100 million to buy 50 modern, multi-level railcars that will feature new passenger safety, accessibility and rider comfort amenities to replace older railcars that have been in service for more than 40 years.
- Baltimore, Md.: The Maryland Department of Transportation Maryland Transit Administration will receive approximately $213 million to buy 52 new light-rail vehicles to replace older vehicles that have been in service for more than 25 years.
- Philadelphia, Pa: The Southeastern Pennsylvania Transportation Authority (SEPTA) will receive approximately $317 million to buy up to 200 new rail cars to replace older rail cars that have been in service for nearly 25 years, operating along the Market Frankford Line, the most heavily used line in SEPTA’s system.
“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.”
According to the FTA, one-third, or 33 percent, of subway and commuter rail vehicles in the United States are more than 25 years old and the 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.
All railcars purchased with federal funding, including through the Rail Vehicle Replacement 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 done in the U.S.
The funding is the second Rail Vehicle Replacement Program package funded by the Infrastructure Investment and Jobs Act (IIJA), which has now invested approximately $1.3 billion to replace rail vehicles nationwide. In May 2023, FTA allocated approximately $703.1 million to six projects through the program. Overall, the IIJA invests a total of $1.5 billion in new funding for railcar replacement through Fiscal Year 2026 to improve safety and reliability.
Projects were selected for funding based on criteria described in the Notice of Funding Opportunity. In response to the funding opportunity, FTA received nearly $1.97 billion in funding requests.
