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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Rail Vehicle Replacement Grants

Replacing Aging Transit RailcarsWhat's New

  • On February 21, 2024, FTA announced the allocation of approximately $631 million to 3 projects in 3 states in funding from the Rail Vehicle Replacement Program. 
  • On November 2, 2023, FTA held a public webinar with information about the Rail Program and how to apply.

Overview

The Rail Vehicle Replacement Program makes funding available competitively to help fund capital projects to replace rail rolling stock. For the purposes of this program, rail rolling stock is defined as 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 (49 U.S.C. 5337).

Eligible Recipients

Eligible recipients are state and local government authorities in urbanized areas (UZAs) that are eligible for State of Good Repair Formula Funding (Section 5337).

Eligible Activities

Eligible activities are the replacement of rail rolling stock. For the purposes of this program, rail rolling stock is defined as revenue service, passenger carrying vehicles, or propulsion (locomotives) vehicles necessary for the provision of rail public transportation. Funded capital projects must be in an agency’s Transit Asset Management (TAM) plan, according to 49 CFR 625.

Statutory Reference

49 U.S.C. 5337 / Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law), §30016 

Match

The federal share is not to exceed 80 percent of the net project cost. The maximum share of the grant funding cannot exceed 50 percent of the net project cost.

For example, a rail vehicle replacement project with a total eligible cost of $100,000,000 may receive up to $50,000,000 from this program. The remaining $50,000,000 could be provided from a combination of non-Federal and other Federal funds, up to $30,000,000 of which could be other Federal funding. For a $100,000,000 project, at least $20,000,000 (20-percent) must be non-Federal funds.

Selected Projects

Grant Type: Competitive