FTA offers $610 million in bus grants before Sept. 21 deadline
Transit agencies, states, local governments and federally recognized tribes have until September 21, 2026, to seek a share of approximately $610 million in competitive Federal Transit Administration grants for buses, facilities and low- or zero-emission transportation projects.
The funding opportunity, posted July 27, includes about $21 million through the Grants for Buses and Bus Facilities Program and about $589 million through the Low or No Emission Grant Program. The FTA has not announced awards under this notice.
Complete applications must be submitted electronically through Grants.gov by 11:59 p.m. Eastern time on September 21. The FTA recommends submitting at least 72 hours before the deadline because Grants.gov or System for Award Management registration and processing problems can delay an application.
What the grants can cover
The Bus Program can support the purchase, leasing or rehabilitation of transit buses and related equipment, regardless of propulsion type. It can also fund the acquisition, construction, leasing or rehabilitation of bus-related facilities.
The Low or No Emission program is for low- or zero-emission transit buses and the facilities needed to operate them. Eligible work may include charging, refueling and maintenance facilities, along with related equipment and facility improvements.
The FTA says it intends to prioritize low-emission projects over zero-emission projects to the maximum extent permitted by law. That is an agency-stated application priority, not a change to the separate statutory programs.
Who can apply
For the Bus Program, eligible recipients include designated recipients, states and territories, Washington, D.C., local government entities and federally recognized Indian tribes. Except for tribes, recipients generally must allocate funds to or operate fixed-route bus service. Private nonprofit organizations engaged in public transportation may participate as eligible subrecipients.
For the Low-No program, eligible recipients and subrecipients include designated recipients, states and territories, Washington, D.C., local government entities and federally recognized Indian tribes. Applicants must have the legal, financial and technical capacity to receive and administer federal funds.
The opportunity is competitive. Eligibility to apply does not guarantee an award, and the funding is not direct assistance to individual riders or households. Any passenger benefits, such as improved reliability, accessibility or cleaner buses, would depend on which projects the FTA selects and how they are implemented.
Federal share and set-asides
The general federal share is capped at 80 percent of eligible project costs, leaving applicants responsible for a local share. The federal share can rise to 85 percent for transit buses that comply with the Clean Air Act or are accessible to people with disabilities. It can reach 90 percent for certain equipment and facility components related to low- or zero-emission buses or accessibility.
The two programs have different statutory requirements. At least 15 percent of Bus Program awards must go to projects located in rural areas. At least 25 percent of Low-No awards must go to low-emission projects that are not zero emission.
Applicants should review the Federal Register notice and FTA program materials for detailed eligibility, workforce, cost-sharing and application requirements. Zero-emission proposals also require a Zero-Emission Fleet Transition Plan, and the notice says 5 percent of federal funds for a zero-emission project must be used for workforce development unless the applicant certifies that less or no funding is needed.
The September 21 deadline applies to both funding opportunities. No awards have been selected under this fiscal 2026 notice.
Sources
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