The Federal Transit Administration (FTA) is accepting applications for approximately $166 million in FY 2026 Rail Vehicle Replacement Program (RVRP) grants, with proposals due July 6. The funding supports replacement of aging passenger rail equipment nationwide.
Eligible applicants include states and government authorities that oversee commuter rail, heavy rail, light rail and streetcar systems. Fleet expansion projects and non-rail vehicles are not eligible. Up to three applicants will receive funding, with the federal share covering as much as 50% of project costs. Applicants must provide at least a 20% local match.
The funding is intended for capital projects that replace outdated rolling stock, including passenger railcars and propulsion vehicles used in public transportation services. Replacing these vehicles will help improve reliability and modernize passenger rail fleets.
RVRP is part of the State of Good Repair Grants (SGRG) Program, which supports replacement of locomotives and railcars under the Infrastructure Investment and Jobs Act (IIJA), set to expire this year. The program has received $300 million annually since 2022.
The last round of awards went to Metra in Chicago, the Maryland Department of Transportation and the Southeastern Pennsylvania Transportation Authority. Those three projects received a combined $630.86 million in FY 2024 and FY 2025 funding.
FTA estimates that roughly one-third of all rail vehicles and subway cars are more than 25 years old, contributing to maintenance challenges and service delays.
Photo by AKHAND PRATAP SINGH from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.
