FTA Awards Nearly $390 Million to Upgrade Aging Bus Fleets Nationwide
March 18, 2026 · 2 min read
David Almeida
The Federal Transit Administration announced $388.3 million in grants for 34 transit projects across 19 states and Puerto Rico, funding nearly 200 new buses and the construction or rehabilitation of approximately 11 bus maintenance facilities.
What Got Funded
The awards come through the FY 2026 Grants for Buses and Bus Facilities Competitive Program, with selections drawn from remaining applications submitted under the FY 2025 Notice of Funding Opportunity. Congress appropriated the FY 2026 funds on February 3, 2026.
A statutory minimum of 15 percent of program funds is reserved for rural area projects, and a 10 percent cap prevents any single applicant from dominating the award pool — two guardrails that ensure geographic and institutional diversity.
"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 FTA Administrator Marc Molinaro.
Part of a $2.4 Billion Transit Push
When combined with other recent funding cycles, FTA has now distributed $2.4 billion across 199 projects spanning 48 states, Puerto Rico, and Washington, D.C. The cumulative scale signals that transit infrastructure remains a federal priority even as other discretionary spending categories face downward pressure.
The program supports bus purchases, van acquisitions, maintenance facility construction, and related infrastructure improvements. Transit agencies that have deferred fleet replacements or facility upgrades are the primary beneficiaries.
A New Funding Round Is Coming
FTA has indicated that a new Notice of Funding Opportunity is expected later in 2026, creating a window for transit agencies that missed this round. Agencies planning applications should focus on documenting fleet age and condition, maintenance facility deficiencies, ridership data, and — where applicable — zero-emission vehicle transition plans.
The current program details and selection criteria provide a roadmap for the next round. Municipal transit authorities looking to identify complementary federal and state transportation funding can find additional opportunities on Granted.
In-depth analysis of federal transit funding trends is available on the Granted blog.