The Federal Transit Authority (FTA) has distributed $2 billion across 165 transit projects to bolster bus programs and networks throughout the nation.
The funding was delivered through the Grants for Buses and Bus Facilities (BBF) Program and the Low or No Emission (Low-No) Grant Program. Both are designed to modernize bus infrastructure, mitigate traffic congestion, incentivize economic connectivity and enable millions of riders to travel efficiently, affordably and safely.
The Low-No program provides transit agencies with the capital needed to buy or lease low- or zero-emission transit buses, facilities and related equipment. A total of $1.1 billion was awarded for Fiscal Year 2025-2026. The FTA also added another $518 million through advance appropriations to make additional selections.
The BBF program prioritizes delivering funding to transit agencies to replace, rehabilitate, buy or lease buses and related equipment. Additional work consists of rehabilitating, buying, building or leasing bus-related buildings. The FTA delivered $400 million through the program for FY 2025-2026.
A selection of the largest awards include:
- The Chicago Transit Authority will spend $121.1 million to replace older buses with new hybrid models.
- The Metropolitan Transit Authority of Harris County will receive roughly $101 million to replace older diesel buses with compressed natural gas (CNG) models, build a CNG fueling station and upgrade a maintenance facility for CNG bus service.
- The Livermore Amador Velley Transit Authority will spend nearly $64 million to build two operations and maintenance facilities and buy low-emission, diesel-electric hybrid buses to replace older models.
- The Washington Metropolitan Area Transit Authority will receive $50.3 million to procure hybrid buses to replace older buses that have outlived their useful life expectancy.
- The Iowa Department of Transportation will use $48 million to replace outdated buses and improve and build bus facilities.
- The San Francisco Municipal Transportation Authority will receive $39.8 million to replace older buses that have reached the end of their useful life with hybrid buses.
- The Sacramento Regional Transit District will spend $39.7 million to replace older buses with CNG alternatives.
Photo by Hannibal Photography from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.
