U.S. Federal Transit Administration Announces Availability Of Nearly $1.7 Billion To Modernize Fleets And Deploy Clean Transit Buses Across America

The U.S. Department of Transportation’s Federal Transit Administration (FTA) recently announced the availability of nearly $1.7 billion to 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.

Made possible by President Biden’s Bipartisan Infrastructure Law, which included historic funding to support public transportation, this Notice of Funding Opportunity (NOFO) is 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 President’s goal of net-zero emissions by 2050. The first year of these programs under the Bipartisan Infrastructure Law allocated funding that will nearly double the number of no-emission transit buses on America’s roads.

The funding opportunity, which covers FTA’s Low or No Emission (Low-No) Program and Grants for Buses and Bus Facilities Program, is structured to advance key national priorities.

As part of FTA’s commitment to build a diverse and skilled public transportation workforce and help upskill workers for new bus technologies, 5 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 toward low- and zero-emission options across the transit sector.

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 Bipartisan Infrastructure Law provides $5.5 billion over five years for the program. 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 Bipartisan Infrastructure Law 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.

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