US DOT Awards $268.2 Million to Midwest for American-Made Trains

California, Illinois, Iowa, Michigan and Missouri will receive $336.2 million from the US DOT to purchase American-made trains to run on rail corridors in those states. The announcement was made by US Transportation Secretary Ray LaHood on August 3. Previously awarded rail dollars bring the amount received by these five states and Washington State to $782 million for the purchase of 33 quick-acceleration locomotives and 120 bi-level passenger cars.

Midwestern states - Iowa, Illinois, Michigan and Missouri - will purchase 7 locomotives and 48 bi-level rail cars with $268.2 million in ARRA funds, obligated this month. Illinois will purchase an additional 12 locomotives and 30 bi-level rail cars with the $222.1 million in ARRA funds obligated in December 2010 and the state's $11.8 million in matching funds.

California and Illinois reached cooperative agreements with the Federal Railroad Administration (FRA) to begin a multi-state procurement of equipment for passenger rail corridors in California, Illinois, Indiana, Iowa, Michigan, Missouri, Oregon and Washington State. Through a joint procurement process states will leverage these federal investments, along with state matching dollars, ensuring taxpayers receive the best possible deal while encouraging manufacturers to build equipment in US plants with American workers and suppliers.

The trains will be designed to travel more than 110 mph along intercity passenger corridors, and meet standards developed by the state-led Next Generation Equipment Committee. The committee will provide manufacturers with consistent specifications for all passenger trains in the United States.

The state partners will now begin a joint procurement process, first issuing a request for information (RFI) and then a request for proposal (RFP) to allow for an open and competitive process. The RFI is expected to be issued in late summer 2011.