How many transit agencies will benefit from this funding?

Three transit agencies will benefit from this funding.

What will the federal funding be used for in Chattanooga?

In Chattanooga, the funding will support a new autonomous shuttle service.

What is the purpose of the federal funding for the transit agencies?

The funding aims to help the transit agencies replace aging rail vehicles.

Who announced the rail vehicle replacement grants and Chattanooga AV shuttle funding?

The rail vehicle replacement grants and Chattanooga AV shuttle funding were announced by the USDOT.

USDOT Announces Rail Vehicle Replacement Grants, Chattanooga AV Shuttle Funding

More than $191 million in federal funding will help three transit agencies replace aging rail vehicles and support a new autonomous shuttle service in Chattanooga.

Alex Roman・Executive Editor

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September 4, 2026

Federal Funding Advances rail and autonomous vehicles — USDOT is investing more than $191 million in transit projects, including $166 million to replace aging rail vehicles in Pittsburgh, Dallas, and Philadelphia and $25 million to support CARTA’s deployment of autonomous shuttles in downtown Chattanooga.
Credit:
METRO

2 min to read

The U.S. Department of Transportation has announced over $191 million in federal grants.
Three transit agencies will receive funding to replace their aging rail vehicles.
Chattanooga is set to benefit from the funding with support for a new autonomous shuttle service.

*Summarized by AI

The U.S. Department of Transportation announced more than $191 million in federal funding for transit projects, including $166 million to replace aging passenger rail vehicles and $25 million to support an autonomous vehicle shuttle service in downtown Chattanooga, Tennessee.

FTA's Rail Vehicle Replacement Funding

The Federal Transit Administration (FTA) selected three projects for funding through its Rail Vehicle Replacement Grants program, which is intended to support the replacement of aging light rail and commuter rail vehicles:

Pittsburgh Regional Transit will receive $82.7 million to purchase 45 new light rail vehicles, replacing some vehicles that have been in service for nearly 50 years.
Dallas Area Rapid Transit will receive $70 million to replace 53 light rail vehicles originally purchased in the 1990s.
SEPTA will receive $13.3 million to replace aging Silverliner IV commuter railcars used on its Regional Rail system.

According to USDOT, approximately one-third of U.S. subway and commuter rail vehicles are more than 25 years old. The department said older vehicles can contribute to maintenance costs and service disruptions.

“These funds will buy new, safer light rail vehicles that have been in service for decades,” said Transportation Secretary Sean P. Duffy. “New transit infrastructure will help commuters avoid delays and improve their passenger experience.”

CARTA Receives $25 Million for Autonomous Shuttle Service

Separately, USDOT and FTA announced a $25 million investment for the Chattanooga Area Regional Transportation Authority to deploy an autonomous vehicle shuttle service in downtown Chattanooga.

CARTA plans to deploy up to six AV shuttles connected to the city’s Mobility & Innovation Command Center. According to USDOT, the center will provide real-time oversight, emergency incident response, and data-driven support for transit operations.

The Chattanooga award is part of a broader $1.73 billion investment in 127 projects nationwide through USDOT’s Better Utilizing Investments to Leverage Development, or BUILD, grant program.