In February 2026, the Federal Transit Administration (FTA) announced an investment of nearly $390 million into 34 transit projects in 19 states and Puerto Rico. The funds will deliver nearly 200 new buses and construct or rehabilitate approximately 11 bus maintenance facilities.

Funding from the FTA's Grants for Buses and Bus Facilities Program supports transit agencies in buying and rehabilitating buses and vans and building and rehabilitating bus facilities.

According to a release, the project selections were made from the remaining applications submitted under the original Fiscal Year 2025 Notice of Funding Opportunity (NOFO) and use Fiscal Year 2026 Grants for Buses and Bus Facilities funding appropriated by Congress on February 3, 2026.

"This is about making the investment today to ensure we are providing safer, more reliable, and more efficient service for families today and for generations to come," said former FTA Administrator Marc Molinaro. "This Administration is committed to rebuilding our nation's transportation infrastructure and helping to improve bus service nationwide."

Following the February awards, the U.S. Department of Transportation has announced the availability of $610 million through the next round of the Grants for Buses and Bus Facilities Infrastructure Program and the Low or No Emission Program.

The new funding opportunity includes approximately $21 million for transit agencies to purchase, lease, and rehabilitate buses and vans and to construct or improve bus facilities. An additional $589 million is available for low- and no-emission buses, related equipment, and supporting infrastructure. According to the FTA, the agency intends to prioritize low-emission projects over zero-emission projects, to the maximum extent permitted by law.

"Every day, millions of American families rely on buses to get around their communities," said FTA Acting Deputy Administrator Matthew Cahill. "That's why the Trump Administration is laser-focused on delivering reliable and modern bus infrastructure that will serve Americans for years to come."

The Notice of Funding Opportunity outlines the application criteria. Applicants are encouraged to submit eligible projects as soon as possible and must do so by September 21, 2026. 

Including the February awards, the FTA has allocated $2.4 billion in Fiscal Year 2025 and Fiscal Year 2026 through the Grants for Buses and Bus Facilities Program and the Low or No Emission Program. In total, the funding supports 199 projects in 48 states, Puerto Rico, and the District of Columbia.

The newly announced $610 million funding opportunity represents the next phase of federal investment in bus infrastructure, continuing support for fleet modernization and facility improvements across the country.

Editor's Note: This article was originally published February 23, 2026, and was updated on July 27, 2026, for continued relevancy on the Grants for Buses and Bus Facilities Infrastructure Programs.