Feds Drop $388M on New Buses: Commute Upgrade or Yawn?
Published Date: 3/17/2026
Notice
Summary
The Federal Transit Administration is awarding $388 million to 34 projects that will help states and public agencies buy new buses, fix old ones, and improve bus facilities in 2026. This funding supports cleaner, safer, and better bus services across the country. If you applied, get ready to start your projects soon and reach out to your regional office for next steps!
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
FTA awards $388.28M to 34 bus projects
The Federal Transit Administration is awarding $388,279,883 to 34 projects to help states and public agencies replace, rehabilitate, purchase, or lease buses and related equipment and to construct or rehabilitate bus-related facilities. These projects fund new buses, repairs to old buses, and facility improvements that support cleaner, safer, and better bus service in the communities selected.
Pre‑award costs allowed from Feb 20, 2026 (risky)
Selected projects are eligible to incur pre-award costs no earlier than February 20, 2026, but pre-award costs are incurred at the recipient’s own risk. The FTA is not required to reimburse pre-award costs if a grant is not ultimately obligated or if the obligated grant is smaller than expected, and reimbursement depends on meeting planning and environmental requirements.
Rural set‑aside and per‑applicant cap applied
A minimum of 15 percent of the amount made available for the Bus Competitive Program is set aside for projects located in rural areas. The statutory cap of 10 percent for any one applicant also applies to these joint FY 2025 and FY 2026 selections.
Obligation deadline: funds by September 30, 2029
Funds allocated in this announcement must be obligated in a grant by September 30, 2029. Recipients must work with their FTA Regional Office and submit grant applications in TrAMS to obligate the awards before that date.
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Key Dates
Department and Agencies
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