USDOT announces $1.5 billion to upgrade and deploy clean transit buses in America

The U.S. Department of Transportation‘s (USDOT) Federal Transit Administration (FTA) has unveiled a historic investment of approximately $1.5 billion to revitalise U.S. transit vehicle manufacturing, particularly focusing on zero-emission buses, bus facility development and workforce enhancement.

This funding, made possible by the Bipartisan Infrastructure Law and the Investing in America agenda, aims to modernise transit systems nationwide, replacing aging buses, reducing air pollution, creating jobs and enhancing system reliability.

U.S. Transportation Secretary Pete Buttigieg said: “More funding for buses means less traffic congestion, reduced pollution and increased employment for American workers.”

USDOT’s FTA’s initiative encompasses the Low- or No-Emission Program, facilitating the acquisition of U.S.-manufactured zero-emission and low-emission transit buses, along with charging infrastructure and supportive facilities. In addition, the Grants for Buses and Bus Facilities Program will aid transit agencies in procuring and rehabilitating buses and vans while constructing bus-related infrastructure. In Fiscal Year 2024, $1.1 billion will be allocated for the Low-No Program, with $390 million earmarked for grants for buses and bus facilities.

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FTA Administrator Nuria Fernandez said: “Buying new buses, including many vehicles that use new technology to cut carbon pollution, will promote cleaner, faster and safer rides as we move toward a better future.”

This funding represents the third tranche of bus grants since the enactment of the Bipartisan Infrastructure Law, reflecting a total investment of over $3.3 billion in American transit buses and supporting infrastructure. An additional $5 billion is slated for bus programmes over the next three years.

The application period for the Notice of Funding Opportunity had commenced on 8 February 2024. As part of FTA’s commitment to workforce development, 5% of each zero-emission project grant is reserved for workforce training initiatives. Furthermore, priority consideration will be given to projects advancing environmental justice under the Administration’s Justice40 Initiative, accelerating a transition toward low- and zero-emission transit options.

2023’s allocations had funded over 1,700 American-built buses, including nearly half being zero-emission models, doubling the number of such buses in operation nationwide. With the latest funding round, transit agencies across the country are poised to enhance their fleets, facilities and workforce development efforts.