The Federal Transportation Administration (FTA) on May 27 announced the availability of approximately $166 million in competitive grant funding through its Fiscal Year 2026 Rail Vehicle Replacement Program. Applications are due by July 6, 2026. The Rail Vehicle Replacement Program funds transit agencies and state and local governmental authorities’ efforts to replace rail vehicles “that are approaching or have exceeded their useful life,” as well as improve reliability and safety. Under 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,” according to FTA, which noted that one-third of subway and passenger rail vehicles in the United States are more than 25 years old, and these older railcars “contribute to delays, increased maintenance costs and customer dissatisfaction.” FTA reported that the federal share is not to exceed 80% of the net project cost. The maximum share of the grant funding cannot exceed 50% of the net project cost. For example, it said, a rail vehicle replacement project with a total eligible cost of $100 million may receive up to $50 million from this program. The remaining $50 million could be provided from a combination of non-federal and other federal funds, up to $30 million of which could be other federal funding. For a $100 million project, at least $20 million (20%) must be non-federal funds, according to FTA. The Rail Vehicle Replacement Program is a set-aside of the State of Good Repair Formula Grants Program (49…
