Midwest passenger car project may have to pay back millions to Feds

May 11, 2016

By Kevin P. Keefe | May 10, 2016 Trains Magazine Newswire

Little progress has been reported since a prototype shell for a fleet of new bilevel passenger railcars for California and the Midwest failed a key compression test last fall at Nippon Sharyo’s factory in Rochelle, Ill., and now a large portion of the project is threatened by a funding deadline. Website Insert 5000 New Seats copy

In a statement provided to Trains News Wire, Caltrans, the lead agency in the 172-car project, acknowledged that some American Recovery and Reinvestment Act funds designated for the $551 million project will likely revert back to the U.S. Treasury. The deadline for spending the stimulus funds is Sept. 30, 2017.

Most at risk are the 130 cars intended for use in the Midwest, an order dependent on the ARRA funds.

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