American Tank Car Modernization Act of 2025
Sponsored By: Representative Nehls
In Committee
Summary
Modernize freight railcar safety and data visibility. This bill would create two Federal Railroad Administration programs to fund onboard telematics, gateway devices, and sensor development for freight railcars to improve real-time location, asset health, and maintenance monitoring.
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- Freight railcar owners and operators: Would be eligible for grants to buy and install onboard telematics and gateway devices that enable near real-time location, railcar asset health, commodity safety monitoring, and automated maintenance alerts.
- Manufacturers and new builds: Grant selection would prioritize newly built freight railcars from qualified manufacturers and cars entering certification or maintenance events, with top priority for tank cars in TIH/PIH and Class I, II, and III flammable service.
- Regulators, fleet managers, and the public: The bill would require a report to the Secretary of Transportation within 3 years on the number equipped, costs, and safety incidents and a separate 1-year report on pilot sensor effectiveness to inform industry acceptance and future policy.
*Would authorize up to $100 million per year for grants and $10 million per year for the pilot for fiscal years 2026 through 2029, totaling up to $440 million in new federal spending.*
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Grants for railcar telematics upgrades
Freight railcar owners or operators could get FRA grants to buy and install onboard telematics and gateway devices. Funds could improve near real-time location, asset health, and safety data, and support sensors for wheel heat, brake and hatch status, impacts, and internal temperature. The FRA would prioritize new builds and cars in certification or maintenance, with tank cars carrying hazardous materials first. To qualify, the railcar and any sensitive tech would need to meet 49 U.S.C. 20171. It would authorize $100 million each year for FY2026–FY2029 and require a public report to Congress within three years.
Pilot grants for railcar sensors
Railcar owners could get FRA pilot grants to develop onboard sensors that feed gateway devices. Sensors would aim to show wheel and bearing heat, hand brake and hatch status, and inside temperature in near real time. To receive funds, the railcar and any sensitive tech would need to meet 49 U.S.C. 20171. The Administrator would report to Congress within one year on activities and sensor adoption. It would authorize $10 million each year for FY2026–FY2029.
Priority favors non-state railcar makers
Grant priority would favor work done by manufacturers and facilities not owned or controlled by state-owned enterprises from certain countries. Entities tied to those governments would not count as qualified for priority. The bill defines these countries of concern using existing Commerce and USTR lists.
Sponsors & CoSponsors
Sponsor
Nehls
TX • R
Cosponsors
Rep. Moulton, Seth [D-MA-6]
MA • D
Sponsored 3/31/2025
Costa
CA • D
Sponsored 6/23/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov