TxDOT awards $154M for transit improvements across Texas

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August 7, 2026

The Texas Department of Transportation is investing $154 million in public transportation projects statewide, using a mix of state and federal funding. 

The funds, which were approved by the Texas Transportation Commission this summer, will contribute to broad connectivity efforts, ensuring residents in both rural and urban areas are able to safely travel to critical destinations such as workplaces, schools, healthcare facilities, grocers and more. 

Recipients selected by the state include 77 public transit and non-profit agencies, with a focus on implementing modern infrastructure and enhancing transit services that accommodate senior citizens and people with disabilities. 

Some of the projects receiving funding include: 

  • The City of Lubbock will advance engineering, design and environmental analysis for an administrative and maintenance facility, a downtown transfer facility and community mobility hubs. 
  • Senior Center Resources and Public Transit Inc. will deploy an AI voice self-service agent to provide round-the-clock automated support for rural transit riders. 
  • All Aboard America will offer intercity bus service along two corridors serving communities across West Texas. 
  • Meals on Wheels Montgomery County will provide robust countywide curb-to-curb transportation for seniors and people with disabilities. 
  • Rolling Plains Management Corporation will buy accessible vehicles with advanced safety features. 

The money comes from a variety of sources, including both state and Federal Transit Administration grant programs. These sources include: 

  • FTA Formula Grants for Rural Areas program – $51 million. 
  • Fiscal Year 2026 and 2027 state funds to transit districts for large and small urbanized areas and rural transit districts – $48.9 million. 
  • Texas 2026 Call for Projects – $36.3 million. 
  • FTA Bus and Bus Facilities Formula Grant program – $8.1 million. 
  • FTA Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities program – $7.4 million. 
  • Federal 5339, 5311 and state funds – $1.5 million. 
  • Statewide and Non-metropolitan Transportation Planning program – $880,000. 

Photo by Castorly Stock from Pexels

This story is part of the weekly Texas Government Insider digital news publication. See more of the latest Texas government news here. For more national government news, check out Government Market News daily for new stories, insights and profiles from public sector professionals.

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