A major surface transportation bill moving through Congress could put significant federal funding behind railcar telematics for the first time. The Build America 250 Act, recently advanced by the House Transportation and Infrastructure Committee, includes a dedicated competitive grant program — Section 10408, the Rail Technology and Asset Pilot Program — that would reimburse railcar owners up to 50% of the cost of purchasing and installing telematics systems and gateway devices.
The bill still needs to pass the full House, clear the Senate, and be signed into law. But given its committee momentum and broad industry support, now is the right time to understand what's in it — so you're ready to move when the funding window opens.
What the Program Would Cover
Telematics is explicitly listed first among eligible uses, and the bill directs the Secretary of Transportation to prioritize telematics grants above all other project types. Eligible technology is defined broadly to include onboard sensors, GPS and cellular location tracking, event status sensors, predictive component condition monitoring, and wayside camera diagnostics. If it monitors your car's location, movement, or mechanical health wirelessly, it likely qualifies.
Other eligible uses include PTC upgrades, wheel and bearing integrity monitoring, train inspection portals, and crew communication technologies — but telematics leads the priority stack by statute.
Who Could Apply
Eligible applicants include freight car owners and operators, freight car manufacturers, rail network data platform companies, states, tribes, and public agencies. You don't need to be a Class I to participate. A 20% per-recipient cap on annual funds means the program is structured to distribute broadly — smaller fleets have a genuine shot.
How Priority Would Be Determined
The bill establishes two separate layers of prioritization that work together.
First, car type. Not all freight cars are treated equally. Tank cars carrying the most hazardous commodities are at the top of the funding priority stack, in this order:
Tank cars in toxic inhalation (TIH/PIH) service
Tank cars in Class I, II, or III flammable service
Tank cars in hazardous materials service
Tank cars in specialized service
Other hazmat freight cars
All other freight cars
If you operate tank cars — especially those carrying toxic or flammable commodities — your cars are among the most fundable in the program.
Second, installation timing. Within each car type, the Secretary would further prioritize based on when and where the telematics is being installed:
Newly built freight cars at a qualified facility
Cars entering a certification event (regulatory recertification)
Cars entering a shop or maintenance event
The practical takeaway: a TIH tank car coming up on recertification is about as strong a candidate as exists under this program. But even a general freight car heading into a scheduled shop visit is eligible — it just sits further down the priority list, which matters most if the program is oversubscribed.
The Cost Share
If enacted, the federal government would cover 50% of total project cost — hardware, installation, and related expenses. Across any meaningful fleet size, that's a material offset. Application prep costs are not reimbursable, and recipients would be required to report back within two years on deployment outcomes and safety results.
Why It Matters Beyond the Funding
Congress's decision to formally define telematics in federal statute — and to prioritize it above PTC upgrades, locomotive purchases, and inspection portals — signals that railcar-level monitoring is being treated as a national infrastructure priority. As telematics data becomes more embedded in FRA safety reporting and supply chain visibility, cars without it will increasingly stand out. Getting ahead of this now, with potential federal support, is a better position than retrofitting under future regulatory pressure.
What You Should Do Now
The bill isn't law yet, but the right moves are the same regardless:
Watch for Senate action. The bill will need to pass the Senate before going to the President. Track its progress — the final program details could change in conference.
Talk to your trade association. AAR, ASLRRA, and similar groups will be following this closely and will surface application guidance as soon as it's available.
The Rail Technology and Asset Pilot Program is among the most targeted freight technology funding proposals to emerge from a surface transportation bill in years. Whether or not it passes in its current form, the direction of travel is clear: telematics on freight cars is becoming a federal policy priority, and railcar owners who are already evaluating the technology will be best positioned to take advantage of whatever program ultimately becomes law.
Interested in how your fleet might fit within the program's eligibility criteria? Contact a Hum representative to learn more.