The U.S. freight railcar industry is set to receive a significant boost, potentially creating numerous Schneider Transportation Jobs and others across the sector, thanks to the reintroduced Freight RAILCAR Act of 2025. Congressmen Darin LaHood (IL-16) and Brad Schneider (IL-10), along with 39 original cosponsors, are championing this legislation to modernize the nation’s freight railcar fleet. This bipartisan effort aims to inject new life into American manufacturing and fortify the transportation infrastructure that is vital to the nation’s economy.
This pivotal bill proposes a nonrefundable 10 percent tax credit designed to incentivize the replacement and upgrading of existing railcars over a three-year period. This financial incentive is capped at 1,000 new freight cars per taxpayer, ensuring that the benefit reaches a wide range of industry players. A key condition is that the railcars being replaced must have been in service for at least 48 months prior to the enactment of the Act, targeting genuine modernization rather than routine fleet turnover.
Representative LaHood emphasized the critical role of Illinois’ rail network, stating, “Illinois’ rail network is a vital economic driver that impacts agriculture, manufacturing, and our local communities. I am proud to reintroduce the Freight RAILCAR Act of 2025 alongside Rep. Schneider to spur job growth and strengthen the United States’ infrastructure. Not only will this legislation improve the efficiency of railcars, but it will address supply chain constraints and support American manufacturing jobs.” His words underscore the dual benefits of the Act: enhancing infrastructure and creating transportation jobs.
Echoing this sentiment, Representative Schneider highlighted the broader implications for the supply chain and job market, “Our rail network is crucial for commuters, farmers, and manufacturers all across Illinois and any weakness in that network is not only a short-term inconvenience but has long term consequences for our supply chain. I am proud to introduce this legislation with my colleague, Rep. LaHood, so we can bring our rail fleet into the 21st century and promote quality, well-paying jobs in the rail sector.” Schneider’s focus clearly links the Act to the creation of quality Schneider transportation jobs and similar roles within the wider rail industry.
Erik Olson, Executive Director of the Rail Security Alliance, also voiced strong support, “We applaud Rep. LaHood and Rep. Schneider for their leadership on the Freight RAILCAR Act of 2025. This important measure would help build a more sustainable freight railcar fleet and help position the industry to address supply chain constraints, giving a boost to boost an industry that provides for the movement of critical goods across the country every day.” This endorsement from industry leadership further validates the Act’s potential impact on the transportation sector and associated Schneider transportation jobs.
The Economic Engine of Rail and Job Creation
The backdrop to this legislative push is the significant scale of the North American railcar fleet, comprising over 1.6 million railcars. While a substantial number are currently in storage (around 321,000), the need for modernization is pressing. The railway supply industry’s economic footprint is considerable; in 2023, it contributed $75 billion to the U.S. GDP and directly supported 240,000 U.S. jobs. Illinois, in particular, benefits significantly, with the railway supply sector employing over 18,000 people and making a substantial contribution to the state’s GDP.
The Freight RAILCAR Act of 2025 is poised to amplify these economic benefits, stimulating demand for new railcars and, consequently, bolstering manufacturing and transportation jobs. By incentivizing investment in modern, fuel-efficient railcars, the Act promises to enhance the efficiency and sustainability of the freight rail network while simultaneously creating opportunities for skilled workers in manufacturing, logistics, and transportation. For individuals seeking Schneider transportation jobs or careers in the broader transportation and rail sectors, this Act signals a positive trajectory for industry growth and job availability.
