Title 49 › SUBTITLE III — GENERAL AND INTERMODAL PROGRAMS › CHAPTER 53 — PUBLIC TRANSPORTATION › § 5339
Gives money to replace, fix, buy, lease, or upgrade buses and to build or improve bus-related facilities. State and local agencies that run fixed‑route buses, and designated recipients who fund them, can get formula grants or compete for special grants. Each year $206,000,000 is set aside for all States and territories: each State gets $4,000,000 and each territory gets $1,000,000. The rest is split using the population-and-service formula in section 5336. Governors can shift some of their State’s set-aside money to rural or to certain urban areas. Grant money can be used for 3 fiscal years. The Federal share for capital projects is up to 80 percent; the rest must come from non‑Federal cash, advertising or concession revenues, reserve funds, service agreements, value-capture revenues, or similar sources. A short pilot (2016–2020) let medium-size urban areas pool funds at the State level so money could be moved among participating cities. Recipients are encouraged to use certain procurement tools from the FAST Act and must explain in writing if they buy fewer than 5 buses without using those tools. Offers competitive grants for new and rebuilt buses, bus equipment, and bus facilities, with extra rules for low- and no‑emission projects. The Secretary will consider vehicle and facility age and condition, disclose scoring methods, and publish results. At least 15 percent of competitive funds must go to rural projects unless there aren’t enough rural applications. No single grantee may get more than 10 percent of the competitive pool. Competitive solicitations must be issued quickly and awards made within 75 days of closing (or by the end of the fiscal year). Grants for low- or no‑emission projects (including zero-emission buses and related infrastructure) follow the same 80 percent Federal cap, may combine other Federal funds, and require a fleet transition plan that covers long-term plans, costs, policy, facilities, utility partnerships, and workforce training needs while avoiding worker displacement. At least 25 percent of low/no-emission funds must go to projects other than zero‑emission vehicles. Five percent of zero‑emission grant money must be used for workforce training unless a recipient certifies a smaller share is needed.
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Transportation, Source: USLM XML via OLRC
Legislative History
Reference
Citation
49 U.S.C. § 5339
Title 49, Transportation
Last Updated
Sep 23, 2026
Release point: 119-110