American Tank Car Modernization Act of 2025
The American Tank Car Modernization Act of 2025 establishes two federal grant and pilot programs to modernize freight railcars with advanced tracking and monitoring technology. The bill authorizes $100 million annually (2026-2029) for a grant program that helps railcar owners purchase and install telematics systems and gateway devices—essentially GPS and sensor technology that tracks railcar location, condition, and safety in real-time. An additional $10 million annually funds a pilot program to develop new sensor technologies that can monitor specific hazards like wheel temperature, brake status, and internal cargo conditions. The legislation prioritizes funding for tank cars carrying hazardous materials, particularly those transporting toxic or flammable substances. The bill includes security provisions to ensure funded equipment doesn't involve state-owned enterprises from countries of concern.
Key Points
- 1Grant Program: Provides up to $400 million over four years (fiscal years 2026-2029) to freight railcar owners for purchasing and installing telematics systems and gateway devices that enable real-time tracking and monitoring of railcar location, condition, and safety.
- 2Priority Focus on Hazardous Materials: Prioritizes funding for tank cars carrying toxic inhalation products (TIH/PIH), flammable materials (Classes I, II, III), and other hazardous materials before funding other freight car types.
- 3Installation Priority: Prioritizes installation on newly manufactured railcars first, followed by railcars undergoing certification or routine maintenance events, to maximize efficiency and cost-effectiveness.
- 4Sensor Development Pilot Program: Allocates $40 million over four years to develop new onboard sensor technologies that can monitor wheel bearing temperature, brake status, hatch position, and internal railcar temperature to identify potential hazards before they occur.
- 5Security and Reporting Requirements: Mandates compliance with federal cybersecurity standards, excludes state-owned enterprises from countries of concern, and requires comprehensive reporting to Congress on program implementation, safety outcomes, and effectiveness within 1-3 years.