The Federal Transit Administration (FTA) has made around $1.5 billion available to help expand bus fleets and manufacturing through two programs.
Entities will have the opportunity to apply for a share of the $1.1 billion Low or No Emission Grant Program (Low-No Program) and the $398 million Grants for Buses and Bus Facilities Program (Bus Program).
Recipients can receive up to 80% of a project’s cost, although the FTA may provide higher contributions for projects related to ADA improvements or the Clean Air Act. Applications must be submitted to either program by July 14, 2025.
The Low-No Program supports transit agencies’ efforts to expand and improve their vehicular fleets. This funding is designed to enable them to buy or rehabilitate zero- or low-emission buses or vans and build, buy, rehabilitate or lease applicable bus facilities. Vehicles covered under this program include:
- Propane buses.
- Compressed Natural Gas (CNG) buses.
- Hybrid-electric buses.
- Hydrogen fuel-cell buses.
- Battery-electric buses.
- Rubber tire trolley buses powered by overhead catenaries.
Projects may also include any that acquire low- or zero-emission buses with leased power sources. Eligible applicants include states, territories, local government entities and Tribes.
The Bus Program prioritizes initiatives that either buy, build, lease or rehabilitate buses, bus-related facilities or relevant equipment. These projects will not need to specify any propulsion type or emissions rating to qualify for grants. Recipients include states, local governments, tribes and private nonprofit organizations in the public transportation sector.
A small percentage of each award must be allocated for workforce development training on zero-emission projects. Additional investments in training are optional. The FTA will distribute 25% of the Low-No Program awards to low-emission projects that are not zero-emission and at least 15% of Bus Program grants to projects in rural areas.
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