US: $1.5 Billion in Federal Funding to Modernise Bus Fleets

The Biden-Harris Administration has announced the availability of 1.5 billion USD to help modernise and decarbonise bus fleets across the US.

This funding will support the rollout of zero-emission buses, while also helping transit agencies build bus facilities and advance workforce development.

Washington Electric Bus Garage
Under the last round of funding, the Washington Metropolitan Area Transit Authority (WMATA) was awarded 104 million USD to modernise its fleet
US Transportation Secretary Pete Buttigieg said:

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

In addition to this funding, the Federal Transit Administration (FTA) has also announced a focus on strengthening the US bus manufacturing industry to help stabilise costs and accelerate deliveries.

For example, by facilitating the increase of standardised bus models, it hopes to shorten manufacturing timelines.

FTA Administrator Nuria Fernandez said:

“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. FTA is also providing solutions to reduce bus costs, shorten production timelines, and maintain domestic manufacturing capacity as transit agencies procure buses.”

To help build a diverse and skilled public transportation workforce, five percent of each grant awarded in this programme will be set aside for training.

What’s more, the funding opportunity also gives priority to projects that advance environmental justice or catalyse a broader shift toward low- and zero-emission options.

Instructions for applying can be found here. Complete proposals should be submitted by 25 April 2025.

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