The U.S. Department of Transportation (US DOT) has announced plans to invest 166 million USD in passenger rail upgrades through the Federal Transit Administration (FTA).

The funding is intended to support the replacement of ageing rail vehicles across the United States.

Metra’s commuter rail service in the Chicago metropolitan area

Currently, around one-third of subway and passenger rail vehicles operating in the country are more than 25 years old. These older railcars contribute to service delays, higher maintenance costs and passenger complaints.

U.S. Transportation Secretary Sean P. Duffy said:

Old and unreliable transit infrastructure is unacceptable. America is the greatest country in the world, and our families deserve a transportation network to match. This is another example of the Trump Administration delivering safer travel, improved reliability, and American-made rail cars for the American people.

The investment will be distributed through the FTA’s Rail Vehicle Replacement Grants programme, which is designed to help transit agencies replace older rolling stock and modernise rail systems. The programme aims to improve reliability, safety and passenger convenience on public rail networks.

The FTA has released a Notice of Funding Opportunity outlining the application requirements for eligible projects. Transit agencies and other applicants have been invited to submit proposals before the deadline of 6 July 2026.

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