The U.S. Department of Transportation has announced a $2 billion investment to upgrade transit bus infrastructure across 45 states and Washington, D.C. The funding will support 165 projects and deliver more than 2,400 buses built with American parts and labor.
The grants are provided through the Federal Transit Administration’s (FTA) Buses and Bus Facilities Program and its Low or No Emission Grant Program. According to the department, the funding will help transit agencies replace aging fleets, modernize facilities, ease congestion, and improve reliability for riders.
“Delivering new-and-improved bus infrastructure is yet another example of how America is building again under President Trump,” said U.S. Transportation Secretary Sean P. Duffy. “Whether it’s to church, school, or work, more people travel by bus than any other form of public transportation. With these grants, thousands of new buses will hit the road and infrastructure will be upgraded—making public transit more efficient, affordable and safe for American families.”
“Transit buses provide a vital service for millions of Americans every day,” added FTA Administrator Marc Molinaro. “These grants will strengthen connections between communities, boost bus safety and reliability, and enhance mobility and quality of life for passengers.”
Where the Funding Is Going
A full list of project selections is available through FTA, but examples include:
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Houston, Texas: The Metropolitan Transit Authority of Harris County will receive approximately $101 million to replace diesel buses with compressed natural gas (CNG) models, build a new CNG fueling station, and upgrade a maintenance facility.
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Tampa, Florida: Hillsborough Area Regional Transit (HART) will receive $32 million to purchase new CNG buses.
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State of Iowa: The Iowa DOT will receive $48 million to replace older buses and improve or construct bus facilities statewide.
How the Programs Work
The Buses and Bus Facilities Program supports the purchase, lease, or rehabilitation of buses and related infrastructure. For FY 2025, approximately $400 million was available.
The Low or No Emission Program funds low-emission and zero-emission buses, along with charging or fueling equipment and facility upgrades. About $1.1 billion was available for FY 2025.
Together, these two programs created a $1.5 billion competitive funding opportunity this year. An additional $518 million in FY 2026 Low or No Emission funding—made available through advance appropriations—will support more project selections next year.
The original announcement can be found here.