The U.S. Federal Transit Administration (FTA) has issued a $610 million Notice of Funding Opportunity (NOFO) for the Grants for Buses and Bus Facilities Infrastructure Programs to support projects that modernize public bus fleets and related infrastructure.
About $589 million will fund the purchase or lease of low-emission and no-emission buses, along with the construction, rehabilitation and leasing of supporting facilities and the purchase of related equipment. The Low or No Emission (Low-No) Program supports several propulsion technologies, including compressed natural gas, hydrogen fuel cell, battery-electric, propane and hybrid buses. Applicants seeking funding for zero-emission projects must dedicate 5% of federal funds to workforce development unless they certify the training is unnecessary. At least 25% of Low-No funding will be awarded to low-emission projects.
The remaining $21 million will support the purchase, rehabilitation and leasing of buses and vans, along with the purchase, construction, rehabilitation and leasing of bus-related facilities. Unlike the Low-No Program, these grants have no propulsion or emissions requirements.
Eligible applicants include states, U.S. territories, federally recognized Indian tribes, Washington, D.C., designated recipients and local government entities. Eligible subrecipients may include private nonprofit organizations engaged in public transportation.
The federal share ranges from 85% to 90%, depending on the project. Applications for either or both programs are due through Grants.gov by Sept. 21, 2026.
Photo by Brett Sayles from Pexels
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