FTA Announces $1.5 Billion to Modernize Bus Fleets and for Clean Buses

FTA has announced the availability of approximately $1.5. billion to support public transit vehicle manufacturing—including zero-emission buses—help build bus facilities, and promote workforce development. This investment in is made possible by President Biden’s Bipartisan Infrastructure Law and Investing in America agenda.

“More funding for buses means less traffic congestion on the road, less pollution in the air, and more jobs for American workers,” said U.S. Transportation Secretary Pete Buttigieg. “Thanks to the President’s infrastructure law, we are bringing thousands of new, clean buses to communities large and small across the country.”

FTA’s Low- or No-Emission Program helps public transit agencies buy or lease U.S.-built zero-emission and low-emission buses along with charging equipment and supporting facilities. FTA’s Grants for Buses and Bus Facilities Program supports agencies in buying and rehabilitating buses and vans and building bus facilities. In FY24, $1.1 billion will be authorized for the Low-No Program and $390 million for the Grants for Buses and Bus Facilities Program.

FTA is also focused on strengthening U.S. bus manufacturing, which can stabilize the cost of new buses and accelerate delivery of new vehicles. More standardized bus models will shorten manufacturing timelines, so agencies competing for funds are encouraged to consider strategies to avoid customization. By prioritizing this in applications, FTA is encouraging improvements in bus vehicle delivery that will result in more American-built buses getting on the road faster.

“Buying new buses, including many vehicles that use new technology to cut carbon pollution, will promote cleaner, faster, and safer rides as we move toward a better future,” said FTA Administrator Nuria Fernandez. “FTA is also providing solutions to reduce bus costs, shorten production timelines, and maintain domestic manufacturing capacity as transit agencies procure buses.”

Five percent of each grant for zero-emission projects is set aside for workforce development and training. FTA encourages workforce development plans to be developed in partnership with workforce representatives and the use of registered apprenticeships.

This funding opportunity also gives priority consideration to projects that advance environmental justice under the Administration’s Justice40 Initiative, and to projects that will catalyze a broader shift toward low- and zero-emission options across the transit sector. FTA is also streamlining application requirements for Tribal governments.