$2 Billion Boost for Cleaner Buses Nationwide Unveiled
Published Date: 1/15/2026
Notice
Summary
The U.S. Department of Transportation is awarding over $2 billion to fund 165 projects that will improve bus services and support cleaner, low-emission buses in 2025 and 2026. This funding helps cities and transit agencies upgrade their bus fleets and facilities, making public transit greener and better for everyone. If you applied, check your status soon and get ready to start your project!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
$2.03B for Bus Fleet Upgrades
The Federal Transit Administration is awarding $2,027,948,082 to fund 165 projects to improve bus services and support cleaner, low-emission buses in FY2025 and FY2026. This includes $397,665,476 for 62 Bus Competitive Program projects and $1,630,282,606 for 103 Low or No Emission (Low-No) projects.
Bus Program Rural Set-Aside (15%)
At least 15 percent of the amount made available for the FY2025 Grants for Buses and Bus Facilities Competitive Program is set aside for projects located in rural areas. That rural set-aside is reflected in the FTA's selections for the Bus Competitive Program.
Low-No Program Low-Emission Set-Aside (25%)
A minimum of 25 percent of the amount made available for the Low or No Emission (Low-No) Program is set aside for projects related to the acquisition of low-emission buses or bus facilities. The Low-No selections reflect this statutory minimum.
Low-No Prioritizes Low-Emission Over Zero-Emission
Consistent with the Notice of Funding Opportunity, FTA prioritized low-emission projects over zero-emission projects in the Low-No Program. Projects marked with an asterisk in the selection tables had only their low-emission elements selected.
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