Federal Grant Supports Rail Vehicle Modernization

The Federal Transit Administration announced a new round of Rail Vehicle Replacement grants.

1 minute read

October 13, 2023, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Two red San Diego trolley cars at Santa Fe Depot station with high-rise buildings in background.

Trolley cars in San Diego, California. | Markus Mainka / Adobe Stock

To help modernize U.S. passenger rail systems, the Federal Transit Administration (FTA) announced $197 million in grants for the replacement of passenger rail cars or locomotives. As Dan Zukowski explains in Smart Cities Dive, “Grants may cover up to 50% of the cost for replacement vehicles but can be combined with other FTA grants to cover additional costs.”

“Funded projects must comply with buy-American provisions under the FTA and the Infrastructure Investment and Jobs Act, which sets minimum domestic content and final assembly requirements for rail cars and locomotives.”

The agency awarded more than $700 million for the same Rail Vehicle Replacement program in fiscal year 2023. 

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