Amtrak will receive billions in federal grants to replace aging train fleets and overhaul its primary Midwest maintenance hub.
The funding from the Federal Railroad Administration is part of a broader effort to address Amtrak’s long-standing infrastructure needs.
According to a release from the national passenger railroad service, the competitive grants are funded by the National Railroad Partnership Program and will support seven projects aimed at improving service for state-supported and long-distance routes across the country.
More than $2 billion of the allocated funds will go toward acquiring up to 43 new trainsets and related improvements.
Company officials stated in the release that the new equipment will replace legacy trains that are nearing the end of their service life and will allow the company to expand its local routes.
The new trains will be manufactured in the United States using suppliers from 31 states, which Amtrak claims will create American jobs and support local economies.
Major Amtrak upgrades coming to Chicago/Midwest
A significant portion of the remaining funding is directed at Chicago, a national rail hub where more than half of the company’s long-distance trains begin or end their trips.
The Federal Railroad Administration awarded up to $572 million to develop a new maintenance facility and up to $87 million to rehabilitate aging bridges, viaducts and ancillary structures between Cermak and Pershing roads.
Amtrak officials said the current Chicago facilities were designed for a different era and lack the space and modern capabilities required to support the current fleet.
“Thanks to these new grants and continued support from [Transportation Secretary Sean Duffy] and [Federal Railroad Administration Administrator David Armstrong Fink], Amtrak is investing in vital projects that will drive economic growth, create jobs, and improve and expand rail service for millions of Americans,” Amtrak Interim President Byl Herrmann said in a statement.
The new maintenance facility will be located on an existing railyard owned by Union Pacific Railroad and developed by Canal Edge LLC.
According to the press release, the approximately $900 million project is expected to begin construction in the fall of 2026 and take about 18 months.
The developer is responsible for financing the project, which includes more than $125 million in personal capital from Justin Ishbia, the controlling shareholder of Canal Edge (and current part-owner of the NBA’s Phoenix Suns).
Illinois lawmakers praised the federal investment, including Sen. Richard J. Durbin and Sen. Tammy Duckworth.
Our state’s top-notch rail system keeps our economy moving while allowing Illinoisans to travel from Chicago to Carbondale. This latest federal investment into Chicago’s Amtrak facilities and infrastructure reflects the city’s status as a thriving transportation hub. I look forward to seeing this funding turn into concrete improvements to our rail infrastructure, in turn, delivering an even better experience to Amtrak riders.”
Sen. Richard J. Durbin (D-Illinois
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Investments in our rail infrastructure are investments in our economy, making sure our rail network is safer, faster and more efficient for people and goods to get where they need to go. This funding will help support critical upgrades to our rail infrastructure and strengthen our city’s role as a national hub for Amtrak.”
Sen. Tammy Duckworth (D-Illinois
The federal grants also include $37.2 million to rehabilitate the 110-year-old South Branch Bridge in Chicago which has significant reliability issues. The rehabilitation project will extend the useful life of the structure, which is used by passenger, commuter and freight trains as it crosses over the Chicago River.
Additional funding will be directed to rural and small-town infrastructure, including:
- Replacing 31 miles of aging track and installing bypass tracks in South Carolina
- Building six miles of second mainline track and improve infrastructure to reduce bottlenecks in north-central Montana (alongside freighter BNSF)
- Onboard shunt enhancements to improve safety across all Amtrak routes
Amtrak is providing a 20% funding match for each of the grant projects. The company will hold a community meeting regarding the Chicago project on Aug. 26.
Amtrak is facing potential crisis due to parts shortage
Any and all additional funding directed toward Amtrak, particularly its long-distance routes, is much-needed as the rail service struggles with widespread shortages of replacement and maintenance parts.
According to recent reporting from Railway Age, Amtrak is operating with almost no spare equipment, leaving it vulnerable to cascading delays, cancellations and possible service cuts due to weather events, accidents or mechanical failures.
But even with new replacement trains and fresh federal funding, Amtrak’s long-distance routes will remain vulnerable for the foreseeable future.
Even if new cars are ordered soon, they would take years to manufacture and enter service, and some of those routes most-affected by the shortage could see reduced schedules or even the elimination of routes.
