Grants for Buses and Bus Facilities Program
- On February 8, 2024, FTA announced the availability of $1.5 billion in Fiscal Year 2024 funding to support state and local efforts to buy or modernize buses, improve bus facilities, and support workforce development.
- Of this, $390 million in funding is authorized under the Grants for Buses and Bus Facilities Program.
- The funding opportunity will advance FTA’s priorities of strengthening U.S. bus manufacturing, containing vehicle costs, and accelerating the delivery of new vehicles.
- This funding opportunity also introduces streamlined application requirements for tribes requesting less than $1 million, making it easier for tribes with relatively small requests to apply.
- FTA will host two webinars to provide information to potential applicants, including a review of program eligibility, an overview of the evaluation criteria and selection considerations, and the submission process. Register for both webinars here. FTA is committed to providing equal access to these sessions for all participants. If you need alternative formats, options, or services, please email email@example.com.
- For more information on tools to improve bus procurement and manufacturing, see FTA’s Dear Colleague letter and join an FTA-hosted webinar on February 29, 2024 at 2:30 pm ET. Register for the webinar here.
The Grants for Buses and Bus Facilities Competitive Program (49 U.S.C. 5339(b)) makes federal resources available to states and direct recipients to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities. Funding is provided through formula allocations and competitive grants.
Allocation of Funding
Funding is allocated to projects on a competitive basis, from proposals submitted to FTA in response to a Notice of Funding Opportunity (NOFO). Past project selections include:
Eligible applicants for the Buses and Bus Facilities Program include designated recipients that allocate funds to fixed-route bus operators, States (including territories and Washington D.C.) or local governmental entities that operate fixed route bus service, and Indian tribes.
Eligible subrecipients include all otherwise eligible applicants and also private nonprofit organizations engaged in public transportation.
Capital projects to replace, rehabilitate and purchase buses, vans, and related equipment, and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities. Additionally, 0.5% of a request may be for workforce development training, and an additional 0.5% may be for training at the National Transit Institute. Applicants proposing any project related to zero-emission vehicles must also spend 5% of their award on workforce development and training as outlined in their Zero-Emission Transition Plan, unless the applicant certifies that their financial need is less.
49 U.S.C. Section 5339(b), IIJA § 30018
Funds remain available for obligation for four fiscal years. This includes the fiscal year in which the amount is made available or appropriated plus three additional years.
The federal share of eligible capital costs is 80 percent of the net capital project cost, unless the grant recipient requests a lower percentage. The Federal share may exceed 80 percent for certain projects related to the ADA and the Clean Air Act. All low-no emission projects are attributable to compliance with the Clean Air Act and/or the Americans with Disabilities Act. Therefore, the Federal share of the cost of leasing or purchasing a low or no emission transit bus is not to exceed 85 percent of the total transit bus cost. The federal share in the cost of leasing or acquiring low- or no-emission bus-related equipment and facilities is 90 percent of the net project cost. Applicants must identify these specific activities in their application in order to receive this increased federal share.
- Federal Transit Administration FAQs on Supportive Services
- Additional information on Zero-Emission Fleet Transition Plans
- Low and No-Emission Vehicle Federal Technical Assistance
- Coordinating Council on Access and Mobility (CCAM)
- FTA’s Altoona Bus Testing
- FTA’s Sustainable Transit for a Healthy Planet Challenge