American Tank Car Modernization Act of 2025

This bill would set up federal grants to help freight railcar owners add tracking and safety devices on their railcars. These devices send near real-time data about a car’s location and health, including wheel temperature, whether the hand brake is on, if a hatch is open, and inside temperature, so problems can be caught early and alerts sent to operators. It aims to improve safety, cut manual data entry, and speed up fixes when something goes wrong .

Money would first go to new cars built in approved facilities by approved manufacturers (not owned or controlled by a state-owned enterprise), then to cars in for recertification or regular maintenance. Tank cars that carry the most dangerous materials are prioritized ahead of other cars. To get funds, railcars and sensitive tech must meet federal security rules. The Transportation Department must report on results after three years. A separate pilot program would fund work on new onboard sensors that link to these devices, with a one-year report on what works and what’s being used in the field .

• Who is affected: Freight railcar owners, operators, shippers, and railcar manufacturers. The program focuses on tank cars and other freight cars carrying hazardous materials.
• What changes: Grants to install tracking and safety devices; a pilot to develop sensors; priority for higher-risk cars; required compliance with federal security standards; public reports on progress and safety impacts .
• When: Funding is authorized for fiscal years 2026 through 2029 for both the main grant program and the pilot program ($100 million per year for the main program; $10 million per year for the pilot).