This legislation, known as the Railway Safety Act of 2026, aims to significantly enhance the safety of rail transportation, particularly for trains carrying hazardous materials, and to improve emergency response capabilities for such incidents. It introduces a new definition for "high-hazard trains" to encompass a broader range of dangerous goods, subjecting them to more stringent regulations and mandating speed limits for all trains, with even lower limits for high-hazard trains in urban areas unless tank cars meet advanced safety specifications. Class I railroads will be required to provide real-time electronic train consist information to fusion centers and commodity flow reports to state and tribal emergency response commissions, ensuring first responders have critical data during incidents. The bill also mandates railroads develop and submit detailed hazardous materials emergency response plans, considering potential releases of toxic inhalation materials and outlining response teams and equipment. To address the safety of long trains, the Secretary of Transportation must evaluate and update regulations based on prior reports and require railroads to report train weight and length in accident data. The bill tackles blocked highway-rail grade crossings by commissioning a study from the National Academy of Sciences and requiring railroads to establish a toll-free number for reporting such blockages. Inspection protocols are significantly strengthened, prohibiting railroads from limiting the time employees have for railcar, locomotive, and brake inspections, and mandating pre-departure and periodic freight car inspections, along with additional daily locomotive checks for Class I railroads. The legislation mandates the development of advanced defect detection systems, requiring Class I railroads to implement risk-based network plans with specific spacing for hot bearing detectors, especially near urban areas. A critical safety measure is the requirement for a two-person crew (a conductor and an engineer) on most freight trains operated by Class I railroads, with limited exceptions that do not apply to high-hazard trains or trains exceeding 7,500 feet in length. Penalties for rail safety violations are substantially increased, with maximum civil penalties reaching up to $1,000,000 for general violations and $5,000,000 if a violation results in death, serious injury, or substantial property damage. The bill also accelerates the phase-out of older tank cars for Class 3 flammable liquids, requiring all such cars to meet or exceed DOT-117 specifications by December 31, 2027, with a possible one-year extension based on manufacturing capacity. Research and development grants are authorized for rail safety infrastructure and safer tank car designs. Regarding federal oversight, the bill mandates reviews of the Federal Railroad Administration's safety culture and workforce management, as well as a GAO report on roadway worker protections. Alcohol and drug testing requirements are expanded to include employees who inspect rail equipment. In terms of emergency preparedness, the bill increases hazardous materials registration fees to bolster the Hazardous Materials Emergency Preparedness Fund and expands eligible uses for grants, including the purchase of personal protective equipment and support for virtual training options. Finally, a new emergency response assistance program is established to provide immediate financial aid to communities affected by "significant hazardous materials transportation incidents." This program allows the Secretary of Transportation to declare such incidents and release funds from the preparedness fund if the responsible party fails to provide an acceptable reimbursement plan, with the responsible party remaining liable for reimbursement.