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Buses and Bus Facilities Grants Program - 5339

The Bus and Bus Related Equipment and Facilities and Low-No Programs

The Grants for Buses and Bus Facilities program (49 U.S.C. 5339) 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. A sub-program, the Low- or No-Emission Vehicle Program, provides competitive grants for bus and bus facility projects that support low and zero-emission vehicles.

Eligible Recipients

Eligible recipients include direct recipients that operate fixed route bus service or that allocate funding to fixed route bus operators; state or local governmental entities; and federally recognized Indian tribes that operate fixed route bus service that are eligible to receive direct grants under 5307 and 5311.

Subrecipients include eligible recipients that receive grant funding under the formula or discretionary programs may allocate amounts from the grant to subrecipients that are public agencies or 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.

Statutory References

49 U.S.C. Section 5339 / FAST Act Section 3017

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.

Allocation of Funding

There are three components to this program. The first is a continuation of the formula bus program established on under MAP-21. The remaining two components include the bus and bus facilities competitive program based on asset age and condition, and a low or no emissions bus deployment program. A solicitation of proposals for competitive funding including requirements and procedures was published in an annual Notice of Funding Opportunity (NOFO) on March 29, 2016.

A pilot provision allows designated recipients in in urbanized areas between 200,000 and 999,999 in population to participate in voluntary state pools to allow transfers of formula funds between designated recipients during the period of the authorized legislation.


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, the Clean Air Act (CAA), and certain bicycle projects.


Applications were due on May 13, 2016. 

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