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$1.5 Billion in Federal Dollars Will Replace Aging Buses, Reduce Pollution, Provide Jobs, and Improve Transit Reliability

Feb. 8, 2024

Electric bus arriving to pick people up in Colorado.

Across the nation, transit agencies are embracing new options to increase ridership, boost their workforces, and reduce emissions to benefit the climate and the future health of America. Today, the Joint Office of Energy and Transportation celebrates widespread access to a new funding opportunity that checks all three boxes.

On Feb. 8, 2024, the U.S. Department of Transportation’s Federal Transit Administration (FTA) made available nearly $1.5 billion for the Low or No Emission and Grants for Buses and Bus Facilities Competitive Programs. Made possible by President Biden's Bipartisan Infrastructure Law, the funding will help transit agencies replace aging buses, reduce air pollution, provide good-paying jobs, and improve the reliability of transit systems.

With $1.1 billion from FTA's Low- or No-Emission Program, transit agencies can buy or lease U.S.-built zero-emission and low-emission transit buses and the necessary charging equipment and support facilities. Meanwhile, $390 million in FTA Grants for Buses and Bus Facilities Program will support transit agencies in buying and rehabilitating buses and vans and building bus facilities.

FTA is also focused on strengthening U.S. bus manufacturing, which can stabilize the cost of new buses and accelerate delivery of new vehicles. “This exciting announcement means more standardized bus models, which will shorten manufacturing timelines,” said Joint Office Executive Director Gabe Klein. “Improvements will result in more American-built buses getting on the road faster, meeting market demands and achieving national climate and equity goals in record time.”

This funding opportunity also gives priority consideration to Tribal governments and projects advancing environmental justice under the Biden-Harris Administration’s Justice40 Initiative. The funding is already helping transit agencies like the Washington Metropolitan Area Transit Authority (WMATA), which was awarded $104 million in 2023 to convert its Lorton, Virginia, bus garage into a fully electric facility, buy battery-electric buses, and develop a workforce training program for drivers, mechanics, and first responders to ensure safe and efficient operations of the fleet.

To learn who qualifies and how to apply for this new wave of funding, visit GRANTS.GOV. Complete proposals must be submitted electronically through the GRANTS.GOV “APPLY” function by April 25, 2024.