Senator Banks Introduces to Restore the North American Railcar FleetFriday, September 12, 2025

WASHINGTON, D.C,– This week, Senators Jim Banks (R-Ind.) and Chris Coons (D-Del.) introduced theFreight Rail Assets Investment to Launch Commercial Activity Revitalization Act(Freight RAILCARAct). This bipartisan bill would enact a temporary, three-year 10% investment tax credit to modernize America’s rail car fleet. Additionally, it will incentivize private companies to retire old and less efficient assets, and better position American industry to address supply chain constraints and support U.S. manufacturing jobs.
Key Provisions of theFreight RAILCAR Actare:
The Rail Security Alliance, American Iron and Steel Institute, Railway Supply Institute, and American Foundry Society have endorsed this bill.
Full text of the bill can be foundhere.
Background:
The current North American railcar fleet is aging and in need of updating. The fleet currently consists of more than 1.6 million railcars, with over 200,000 in the U.S. being more than 40 years old. Estimates indicate that nearly 250,000 freight railcars will become obsolete and require replacement within the next 15 years.
Incorporating new manufacturing methods, innovative materials, and improved safety standards into the production of new railcars will enable faster delivery of goods to market while also reducing wear and tear on rail lines.