The US Federal Transit Administration (FTA) has announced a Notice of Funding Opportunity (NOFO) for approximately 1.5 billion USD in grants aimed at supporting state and local efforts to modernise public bus services.
This funding is allocated through two key programmes: the Grants for Buses and Bus Facilities Programme and the Low or No Emission (Low-No) Programme.
The Grants for Buses and Bus Facilities Programme provides financial assistance to public transit agencies for the purchase, rehabilitation, and replacement of buses and vans, as well as the construction and improvement of bus maintenance facilities.
The Low-No Programme focuses on aiding agencies in acquiring or leasing US-built low- or no-emission vehicles, including necessary equipment and supporting infrastructure.
For Fiscal Year 2025, approximately 1.1 billion USD is authorised under the Low-No Programme, with an additional 390 million USD allocated for the Grants for Buses and Bus Facilities Programme.
This year’s NOFO introduces changes to previous requirements by removing funding priorities related to climate change, sustainability, environmental justice, and diversity, equity, and inclusion. Instead, the FTA is prioritising transit agencies that demonstrate how their projects will enhance transportation accessibility for families with young children, particularly in improving access to employment, healthcare, and retail services.
Applications for this funding opportunity must be submitted electronically through Grants.gov by 11:59 PM Eastern Time on 14 July 2025.
