FTA Reopens $610 Million in Transit Grants

Transit agencies looking to modernize their fleets have another opportunity to pursue federal funding. The U.S. Department of Transportation’s Federal Transit Administration (FTA) has reopened applications for the Low or No Emission (Low-No) and Grants for Buses and Bus Facilities Infrastructure Programs for fiscal year 2026, making $610 million available for bus purchases, supporting infrastructure, and related workforce development. Applications are due September 21, 2026.

FTA is offering approximately $589 million under the Low-No Program and $21 million through the Grants for Buses and Bus Facilities Program. The Bus Program supports the purchase, rehabilitation, or leasing of buses and bus-related facilities, while the Low-No Program funds the acquisition of U.S.-built low- and no-emission transit buses, as well as the fueling, charging, maintenance, and other facilities needed to support them. 

For the propane industry, this funding opportunity continues to represent an important avenue for expanding propane autogas transit fleets. Low-emission propane autogas buses remain eligible under the Low-No Program and offer agencies a proven pathway to reduce emissions while avoiding many of the infrastructure challenges associated with some alternative technologies. Existing propane fueling infrastructure, rapid deployment timelines, and lower upfront infrastructure costs can make propane an attractive option for agencies seeking to replace aging diesel fleets. Roughly $23 million were successfully awarded to propane transit projects in 2025.

The reopening follows strong demand for transit funding. During the FY 2025 funding cycle, FTA received requests far exceeding available funding, demonstrating continued nationwide interest in fleet modernization and facility improvements. FTA expects to announce FY 2026 project selections within 75 days after the application deadline.

Those considering propane autogas should begin preparing applications as soon as possible. Successful proposals typically demonstrate project readiness, strong local partnerships, clear emissions and operational benefits, and a well-developed implementation strategy. NPGA encourages members to engage with local transit providers, municipalities, and regional planning organizations to explore propane autogas opportunities under this funding round. NPGA’s grants team remains available to help identify project opportunities, review eligibility requirements, strengthen applications, and provide technical assistance throughout the grant process. Contact Nicholas Edward at [email protected] to help prepare an application today.