$1.5 Billion in Grant Funding for Municipal Transportation

The Federal Transit Administration (FTA) recently announced that $1.1 billion in competitive grants for the FY 2025 Low or No Emission Grant Program and approximately $400 million for the FY 2025 Grants for Buses and Bus Facilities Program opened to receive applications. These funding opportunities come as great news to the thousands of municipal and tribal transportation administrations nationwide who rely on federal programs to provide bus services to millions without harmful pollutants.

Both the Low or No Emission Grant Program (Low-No Program) and the Grants for Buses and Bus Facilities Program (Bus Program) are open to governments and authorities at the local, state, and tribal level to support bussing transportation projects accessible to the public at large. This precludes projects supporting prison or school bus fleets only accessible to a closed user base. Low-No Program funds will be awarded to assist the purchase or lease of buses that use low- or no-emission propulsion technologies, including related equipment or facilities while Bus Program funds will be awarded to purchase, rehabilitate, or lease buses and related equipment, and to construct, purchase, rehabilitate, or lease bus-related facilities. Any zero-emission project (usually only applicable to EV vehicles) must utilize 5% of their awarded federal funds for workforce development, unless the applicant certifies less or no funding is needed for this purpose.

Applications to these funding opportunities will be accepted for review between May 15 and July 14, 2025 through each program’s respective Grants.gov opportunity listing. You can review the Grant.gov listings for the Low-No Program and Bus Program directly. There is a $100 million award cap per project for the Low-No Program and a $39 million cap for awards from the Bus Program.

Based on recent moves by the Trump Administration to curtail the effects of EV mandates and anti-carbon actions taken by Biden-era federal agencies, especially through grant funds, it would behoove any potential applicant to examine propane autogas as an option for their planned transit projects. Propane-powered buses are more efficient than diesel buses, when comparing maintenance expenses, emissions controls, and repairs, averaging about 40% less than gasoline per gallon and 50% less than diesel to operate. Based on current environmental regulations, diesel buses require complex, costly emission-reduction equipment like particulate filters and exhaust fluid whereas propane buses eliminate these needs, making them a cost-effective option long-term. Propane vehicles reduce smog-producing emissions, virtually eliminate particulate matter, and lower nitrogen oxides by 95% compared to diesel, making them an excellent choice for municipalities concerned with air quality and respiratory health. With the existing and expanding extensive autogas network across the U.S., transitioning to propane has never been easier.

Propane-powered buses already support millions of citizens across American villages, towns, cities, counties, tribal territories, and within a myriad of national parks, providing clean transportation at incredibly affordable prices. This $1.5 billion opportunity is time-sensitive and is a great opportunity to expand necessary infrastructure, conduct repairs on fleet vehicles, or make the ultimate transition over to propane—the clean, affordable, American energy option.

Interested in preparing a grant application or need any insight into this and other funding opportunities? Contact NPGA’s Manager of Grants and Agency Engagement, Nicholas Edward.