FTA opens applications for $610 million to modernize U.S. bus systems
The Federal Transit Administration announced a $610 million funding opportunity on July 27, 2026, giving transit agencies across the United States a chance to seek federal support for buses, bus facilities, equipment and low- or no-emission vehicles.
The money is available through the Grants for Buses and Bus Facilities Infrastructure Programs. Applications are due Sept. 21, 2026, creating a near-term deadline for agencies seeking to replace vehicles, improve facilities or expand cleaner bus operations.
How the funding is divided
Approximately $21 million is intended for agencies buying, leasing or rehabilitating buses and vans, as well as for agencies building bus facilities. That portion addresses conventional bus and facility needs covered by the program.
Approximately $589 million is intended for low-emission or zero-emission buses, related equipment and supporting facilities. The larger portion of the opportunity is therefore directed toward projects that reduce emissions or eliminate them from bus operations, although the notice does not say that every project funded will be zero-emission.
The FTA said it intends to prioritize low-emission projects over zero-emission projects to the maximum extent permitted by law. That distinction matters for agencies preparing applications: the agency has identified a preference, but the announcement does not establish that all successful projects must use zero-emission technology.
What agencies should know
The opportunity is administered nationally by the Federal Transit Administration for eligible transit agencies across the country. It is not an award to one state, city or agency, and the announcement does not identify recipients.
Instead, agencies must submit applications before the Sept. 21 deadline. The final distribution among successful applicants is not yet known, and the amount any individual agency could receive is not specified in the approved announcement.
For transit systems, the application process is the immediate practical consequence of the federal notice. Agencies may use the opportunity to pursue vehicle purchases, leases or rehabilitation; bus-facility construction; equipment; or supporting infrastructure tied to low-emission and zero-emission buses, depending on the project and the program requirements.
The funding could also place competing priorities in the same national application process. Agencies seeking basic fleet or facility improvements are covered by the approximately $21 million component, while the approximately $589 million component is aimed at low-emission and zero-emission projects. The notice does not say how many agencies will apply or how many projects will ultimately receive funding.
What happens next
Transit agencies must prepare and submit applications by Sept. 21, 2026. The FTA will then conduct the application and award process. Because the announcement is a funding opportunity rather than a completed award, the identities of recipients, project locations and final grant amounts remain to be determined.
The announcement is part of the U.S. Department of Transportation’s broader fiscal year 2026 transportation grant activity, which includes nationally eligible infrastructure projects. The FTA notice provides the specific bus-program opportunity: $610 million in total, divided between the approximately $21 million general bus and facility component and the approximately $589 million low- or zero-emission component.
Until the application process is complete, the national bus network has an opportunity to seek the funds but no guarantee that a particular agency or project will receive them. The Sept. 21 deadline is the next firm date identified in the announcement.
Sources
- Trump’s Transportation Department to Invest $610 Million to Modernize U.S. Bus Infrastructure and Make More Family Friendly, Federal Transit Administration
- Better Utilizing Investments to Leverage Development Grant Program, U.S. Department of Transportation
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