FTA opens $1.7 billion bus fleet and facility funding opportunity
The Federal Transit Administration (FTA) issued a nearly $1.7 billion Notice of Funding Opportunity (NOFO) for two programs that help transit agencies replace old buses, provide good-paying jobs, improve transit affordability and reliability, invest in community health and environmental justice and contribute to the Biden Administration’s goal of net-zero emissions by 2050.
The NOFO for the Low or No Emission (Low-No) Program and Grants for Buses and Bus Facilities Program will support state and local efforts to modernize aging transit fleets with low- and no-emission buses, renovate and construct bus facilities and support workforce development.
"The historic funding opportunity is helping communities across the country purchase new buses, which will cut harmful pollution and train workers for good-paying jobs" said U.S. Transportation Secretary Pete Buttigieg. "With these new, cleaner buses, Americans will have better options to get where they need to go, and people everywhere will benefit from cleaner air."
The funding opportunity is structured to advance key national priorities such as workforce development and environmental justice.
As part of FTA's commitment to build a diverse and skilled public transportation workforce and help upskill workers for new bus technologies, five percent of each grant for zero-emission projects must be used for workforce development and training. FTA encourages workforce development plans to be developed in partnership with workforce representatives and the use of registered apprenticeships.
This funding opportunity also gives priority consideration to projects that advance environmental justice under the administration's Justice40 Initiative and to projects that will catalyze a broader shift towards low- and zero-emission options across the transit sector.
"Buying new buses, including many vehicles that use new technology to fight climate change, will promote cleaner, faster and safer rides as we move toward a better future," said FTA Administrator Nuria Fernandez. "Thanks to the strong commitment of this administration to not leave anyone behind, we will be able to connect more people in their communities and improve the reliability of transit service."
FTA's Low or No Emission (Low-No) Program helps transit agencies buy or lease U.S.-built zero-emission and low-emission transit buses, along with charging equipment and supporting facilities. The Infrastructure Investment and Jobs Act (IIJA) provides $5.5 billion over five years for the program – more than six times greater than the previous five years of funding. For Fiscal Year 2023, approximately $1.22 billion will be available for grants under this program.
FTA's Grants for Buses and Bus Facilities Program supports transit agencies in buying and rehabilitating buses, vans and related equipment and building bus facilities. The IIJA provides nearly $2 billion over five years for the program. For Fiscal Year 2023, approximately $469 million for grants will be available. Both programs support buses that reduce air pollution and help meet President Biden's goal of net-zero emissions by 2050.
The first round of selections for these programs under the IIJA will put approximately 1,800 new American-made buses on the roads, with more than 1,100 of those using zero-emissions technology.
