Grants for Buses and Bus Facilities Program

What's New

On May 14, 2025, FTA announced the availability of $1.5 billion under the FY25 Notice of Funding Opportunity: Grants for Buses and Bus Facilities and Low or No Emission Program. Applications are due by July 14, 2025.
- Of this, approximately $398 million in funding is authorized under the Grants for Buses and Bus Facilities Program.
- This funding opportunity includes streamlined requirements for Tribal applicants requesting less than $1 million.
On June 4, FTA hosted a webinar to provide information to potential applicants, including an overview of program eligibility, evaluation criteria, selection considerations, and the submission process. View the presentation or watch the recording (Passcode: fFR#0c$p).

Overview

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 Recipients

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.

Eligible Activities

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.

Statutory References

49 U.S.C. Section 5339(b), IIJA § 30018

Funding Availability

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.

Match

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.

Resources

Grant Type: Competitive

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