A new industrial-policy initiative for domestic production of mass-transit products could help the United States overcome multiple economic challenges. It could provide high-wage jobs, generate tax revenue, expand exports, and reduce trade deficits. This mass-transit-production strategy requires a new kind of industrial and planning policy to overcome the limits of traditional public works. It's not enough to lay more tracks and upgrade rail facilities. The government has to support domestic production of trains, signals, and related transit hardware and software.