On January 27, 2023, FTA announced the availability of nearly $1.7 billion in Fiscal Year 2023 funding to support state and local efforts to buy or modernize buses, improve bus facilities, and support workforce development.
The Grants for Buses and Bus Facilities Competitive Program makes federal resources available to states and direct recipients to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities.
Eligible applicants for the Buses and Bus Facilities Program include designated recipients that allocate funds to fixed-route bus operators, States (including territories and Washington D.C.) or local governmental entities that operate fixed route bus service, and Indian tribes.
Eligible subrecipients include all otherwise eligible applicants and also private nonprofit organizations engaged in public transportation.
- Capital projects to replace, rehabilitate and purchase buses, vans, and related equipment and to construct bus-related facilities
- including technological changes or innovations to modify low or no emission vehicles or facilities
- Additionally, 0.5% of a request may be for workforce development training, and an additional 0.5% may be for training at the National Transit Institute
- Applicants proposing any project related to zero-emission vehicles must also spend 5% of their award on workforce development and training as outlined in their Zero-Emission Transition Plan, unless the applicant certifies that their financial need is less
All eligible expenses under the Low-No Program are attributable to compliance with the Clean Air Act and/or the Americans with Disabilities Act. Therefore, the Federal share of the cost of leasing or purchasing a transit bus is not to exceed 85% of the total transit bus cost. The federal share in the cost of leasing or acquiring low or no-emission bus-related equipment and facilities is 90% of the net project cost.
Funds remain available for obligation for four fiscal years. This includes the fiscal year in which the amount is made available or appropriated plus three additional years.
April 13, 2023