Public officials throughout the U.S. are carefully watching to see what happens when Congress resumes its work after the summer break. All eyes will be on the necessary passage of the 2026 budget bill, which has not yet been adopted even though the federal government’s 2026 fiscal year begins Oct. 1, 2025.
All indications point to reductions for projects tied to clean air objectives, but with no new budget yet, the 2025 funding to support upgrading bus fleets to battery-electric and hybrid models is still in place. Hundreds of projects are about to launch for bus fleet upgrades, modernization, and expansion projects at transit authorities throughout the U.S. Funding is also still available for vehicle upgrades for city fleets, school district buses, and other public entities.
Numerous states are leading the move to replace aging government and public transit fleets with electrical and hybrid vehicles. California stands out with aggressive mandates, where all new transit buses are scheduled for zero-emissions by 2029. Agencies such as the Antelope Valley Transit Authority, Los Angeles Metro, and San Francisco Metro Transit Authority are already poised to meet the targeted dates. New York, Oregon, Rhode Island, Pennsylvania, Connecticut, Illinois, Hawaii and the District of Columbia are all rushing as well to electrify buses and other fleets.
Almost every upcoming project for transit vehicle purchases also has contracting components for construction, technology, engineering, and several other services.
The San Diego Metropolitan Transit System (MTS) will expand its transit network with a goal of transitioning to a fully zero-emission bus fleet. A sixth bus facility will be added, and the project cost is expected between $200 million and $350 million. When completed, the new modernized facility will be capable of accommodating up to 250 new electric buses.
Key elements of the effort include construction of a cutting-edge maintenance building and a 24-hour operations hub. The site will also have dedicated parking for the fleet, up to 250 charging stations, fare processing areas, and multiple service bays. The operations hub will provide space for driver briefings, dispatch training, and a central control center for managing the fleet and charging systems. The facility may also incorporate advanced on-site energy storage, upgraded transformers to strengthen grid reliability, and enhanced stormwater management systems. Currently in the design phase, this project should be ready for solicitation documents to be released in early 2027.
The New Jersey Transit Authority has budgeted $125 million to replace buses that are at the end of their useful life. The purchase of 2,300 new buses is scheduled for 2026. This upcoming solicitation will be for cruiser buses and articulated buses for three regional planning organizations. The planned cost allocations are $38.4 million to Delaware Valley Regional Planning Commission, $74.9 million to North Jersey Transportation Planning Authority, and $11.6 million to South Jersey Transportation Planning Organization. Funding support is available from the Federal Transit Administration and matching state funds.
The 2026 plans also include more than $70 million for bus maintenance and support facilities, equipment, and bus passenger expansions. A vendor will be selected by a formal procurement process.
The Zero-Emission Bus Deployment Initiative in Hawaii represents a significant statewide commitment to electrifying and modernizing public transit. The first phase of the project was approved for $16.6 million to procure 12 battery-electric buses, with an equal distribution among three cities. The overall project cost is expected to exceed $50 million for vehicle acquisition, infrastructure development, and comprehensive system upgrades. Funding sources include the Federal Transit Administration and matches from the state of Hawaii, which has a stated goal of achieving 100% renewable fuel fleets by 2035. As part of Honolulu’s broader electrification strategy, there are plans to acquire up to 78 additional zero-emission buses within the next three years. Charging infrastructure will be included for transit centers also. Currently the project is in the planning and permitting phase, with solicitations for vehicle procurement and infrastructure development expected between November and December 2025.
The North County Transit District in Oceanside, California has plans for a $50 million investment to replace its BREEZE bus fleet. The purchase will bring in a mix of battery-electric and hydrogen-powered buses, replacing aging vehicles that are at the end of their capability lifecycles. The bus purchase specifications will call for low floor boarding for faster and more accessible entry, advanced passenger information systems, and enhanced internal climate control. Onboard Wi-Fi and real time tracking technology will allow riders to stay connected and safety upgrades will include modern collision avoidance systems, 360-degree camera monitoring, and improved lighting. The shift to battery-electric and hydrogen fuel cell technology will deliver smoother, quieter rides with no tailpipe emissions, providing cleaner air to communities along major transit corridors. Plans call for the initial procurement processes to begin in late 2025.
The Metropolitan Area Transit Authority in Washington D.C. approved a $112 million investment plan for 2026 to fund a significant bus fleet replacement initiative. The objective is to replace aging buses that have exceeded their useful life, improve service reliability, and meet regional sustainability goals. The effort will reduce maintenance costs, improve fuel efficiency, and lower emissions in the Washington, D.C. metropolitan area.
New bus purchases will include a mix of electric and hybrid models designed for faster boarding with better accommodation for strollers and wheelchairs. Each bus will also be equipped with modern fare collection systems, real-time location displays, onboard Wi-Fi, and enhanced HVAC systems as well as collision avoidance technology and 360-degree exterior camera coverage. Procurement for the overall initiative will take place throughout 2026.
The Massachusetts Bay Transportation Authority has obtained $65.3 million to replace a significant portion of its aging diesel bus fleet. Plans call for 160 new electric hybrid bus models. Many of the diesel buses currently in service have surpassed their expected lifespan and they are costly to operate. The shift to hybrid technology will cut fuel use, lower greenhouse gas emissions, and deliver a more dependable service for riders. Officials at the Massachusetts Bay Transportation Authority say that their goal is to have a 100% electric bus fleet as soon as possible.
Companies that provide buses may want to begin now to put together coalitions with other service and equipment providers to pursue these projects which will launch soon throughout the U.S.
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