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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

U.S. Department of Transportation Announces $409.6 Million Funding Opportunity to Support America’s Transit Bus Fleets

Monday, September 20, 2021

Projects will support transit workforce development, improve air quality, and advance environmental justice

WASHINGTON – The U.S. Department of Transportation's Federal Transit Administration (FTA) today announced the availability of up to $409.6 million in competitive grant funds for building and maintaining transit buses and vans in communities throughout America. The Buses and Bus Facilities Program is FTA’s largest annual discretionary package, and it supports the Biden-Harris Administration’s investment in American infrastructure and commitment to combatting climate change nationwide.

The Notice of Funding Opportunity (NOFO) for FTA's Grants for Buses and Bus Facilities Program announced the opportunity to compete for grants helping transit agencies buy and rehabilitate buses, vans, and related equipment, and build bus facilities.

"The Biden Administration believes that expanding and improving bus service is an essential part of reaching our ambitious economic, climate, equity, safety and accessibility goals," Deputy Transportation Secretary Polly Trottenberg said. “This funding will help transit agencies modernize their bus fleets and better connect their riders with jobs and opportunities -- benefits we can bring to even more communities with passage of the Infrastructure Investments and Jobs Act.”

In support of the President's goal to mobilize American ingenuity to build a modern infrastructure and an equitable, clean energy future, FTA is encouraging applicants to submit projects that will help improve air quality and promote environmental justice.

"Transit operators nationwide have an opportunity to replace aging buses and facilities with newer, cleaner infrastructure that is more efficient to operate and maintain," said FTA Administrator Nuria Fernandez. "Modern buses, particularly those powered with battery-electric or fuel cells, improve air quality and help us address the climate crisis."

As part of the Administration's focus on fighting climate change, FTA encourages applicants to consider significant community benefits related to the environment, including those projects that incorporate low- or no-emission technology or specific elements to address greenhouse gas emissions and climate change impacts. 

FTA also encourages applicants to consider projects that encourage racial equity in planning and policies, and project investments that either proactively address racial equity and barriers to opportunity, including automobile dependence as a form of barrier, or redress prior inequities and barriers to opportunity.  

As part of FTA’s commitment to helping transit workers keep up with technological advancements, recipients will be encouraged to use up to 0.5 percent of their grant award for workforce development activities and an additional 0.5 percent for costs associated with training at the National Transit Institute.  

Eligible applicants for Grants for Buses and Bus Facilities funding include public transit agencies, state transportation departments and Indian Tribes. Projects will be evaluated by defined criteria in Federal law and in the NOFO, including the applicant’s demonstration of need, the project’s benefits, project implementation strategy, and capacity for implementing the project.

Instructions for applying can be found on FTA's website and in GRANTS.GOV (funding opportunity FTA 2021-008-TPM-Bus). Complete proposals must be submitted electronically through the GRANTS.GOV "APPLY" function by 11:59 p.m. Eastern Time on November 19, 2021.