Rail transit offers society a number of benefits, including reduced congestion and pollution and increased mobility. However, rail systems and cars are costly: Transit agencies can pay more than $3 million per car, often using federal funds. This report describes: (1) characteristics of the U.S. market for transit rail cars; (2) the federal government¿s role in funding and setting standards for transit rail cars; and (3) challenges transit agencies face when procuring rail cars. The report analyzed U.S. and worldwide rail car market data for commuter, heavy, and light rail systems and interviewed Department of Transportation officials and domestic and international industry stakeholders, including the American Public Transportation Assoc. Charts and tables.