Dive Brief:
- The Federal Transit Administration on Feb. 21 announced $631 million in grants for new rail cars to transit agencies serving Baltimore, Chicago and Philadelphia.
- The grants will fund the procurement of 300 commuter, light and heavy rail cars to replace older vehicles, providing safer and more modern transportation.
- “Newer, better railcars will mean a safer, more reliable, more accessible transportation future for the people of these communities,” said FTA Administrator Nuria Fernandez in a press release.
Dive Insight:
One-third of transit and commuter rail cars operating in the U.S. are more than 25 years old, according to the FTA. These vehicles incur higher maintenance costs and lack modern amenities such as digital signage and direct access for people with disabilities.
The FTA’s Rail Vehicle Replacement program was established by the Infrastructure Investment and Jobs Act as a competitive grant component of the State of Good Repair grants program and is funded at $1.5 billion over five years.
The latest awards, which cover fiscal years 2024, 2025 and part of 2026, include:
- Approximately $214 million to the Maryland Department of Transportation Maryland Transit Administration to purchase 52 new light rail vehicles to replace cars that have been in use for more than 25 years.
- $100 million to Metra, the commuter rail division of Northern Illinois’ Regional Transportation Authority, for 50 multilevel rail cars to replace equipment that is more than 40 years.
- Approximately $317 million to the Southeastern Pennsylvania Transportation Authority to acquire up to 200 new rail cars for the Market-Frankford Line, the agency’s most heavily used route.
The Rail Vehicle Replacement program may cover up to 50% of the total project cost, but additional federal grants can bring the federal share up to a maximum of 80%. Prior grantees for 2022 and 2023 include the Sacramento, California, Regional Transit District; South Florida Regional Transportation Authority; Chicago Transit Authority; Bi-State Development Agency of the Missouri-Illinois Metropolitan District; Greater Cleveland Regional Transit Authority and the Utah Transit Authority.
All rail cars purchased through this program must comply with the Buy America Act, which requires that at least 70% of each rail car be made in the U.S. and that final assembly must take place in the U.S.
