The Railway Safety Act of 2026 aims to significantly enhance rail safety, particularly for trains transporting hazardous materials, and improve emergency response capabilities. It introduces new definitions for "high-hazard trains" and mandates comprehensive safety requirements for their operation. These include specific speed limits, such as a maximum of 40 miles per hour in high-threat urban areas for trains carrying certain flammable liquids unless they meet updated tank car standards. The bill requires Class I railroads to generate accurate, real-time, and electronic train consist information for hazardous materials, which must be shared securely with fusion centers and state or tribal emergency response commissions. This information includes the identity, quantity, and location of hazardous materials, along with emergency contact details. Furthermore, the Secretary of Transportation must evaluate and update operational requirements for high-hazard trains, focusing on preventing derailments by addressing the placement of empty railcars and ensuring adequate buffer cars. To bolster inspection protocols, the Act prohibits railroads from limiting the time employees have for railcar, locomotive, or brake inspections. It mandates pre-departure inspections by qualified personnel at designated locations and requires new regulations for periodic freight car inspections, typically every five years. A key provision establishes requirements for defect detection systems , including risk-based network plans for Class I railroads with specific spacing for hot bearing detectors, and a grant program to assist commuter railroads in installing this technology. A significant safety measure is the requirement for a 2-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 very long trains. The bill also accelerates the phase-out of older, non-DOT-117 compliant tank cars for Class 3 flammable liquids by December 31, 2027, with a potential one-year extension based on manufacturing capacity. Penalties for rail safety violations are substantially increased, with maximum fines reaching up to $5 million for severe incidents or repeated offenses. Beyond rail operations, the legislation strengthens hazardous materials emergency response and preparedness. It increases hazardous materials registration fees for businesses, directing these funds to the Hazardous Materials Emergency Preparedness Fund. Grant programs for emergency response are expanded to cover personal protective equipment, simulated exercises, and gap analyses, with a requirement for states to pass through 70% of funds to local entities. Crucially, the bill establishes an emergency response assistance program to provide immediate financial aid to communities responding to significant hazardous materials transportation incidents, with the responsible party liable for reimbursement.