Fiscal Year 2026 Competitive Funding Opportunity: Buses and Bus Facilities Program
Opportunity Overview The Federal Transit Administration (FTA) is making about $21 million available through its Fiscal Year 2026 Buses and Bus Facilities Program. This competitive grant round will fund capital projects that replace, rehabilitate, purchase, or lease buses and related equipment, as well as work on bus-related facilities like maintenance depots, parking lots, and passenger stations. The FTA expects to make five awards from this funding pool. This is a federal discretionary grant, meaning agencies must compete for the money rather than receive it through a formula. The program is designed to help public transit systems modernize their fleets and infrastructure. For a mid-sized transit agency, $21 million could cover a significant bus replacement order or a major facility renovation. Smaller agencies might use the funds for a handful of new vehicles or targeted facility upgrades. The FTA is the agency within the U.S. Department of Transportation that oversees federal funding for public transit. It administers billions of dollars in grants each year to support transit systems across the country, from large urban networks to small rural operations. The Buses and Bus Facilities Program is one of its core competitive grant streams, and it has funded thousands of projects since its inception. Eligible applicants include designated recipients that allocate funds to fixed-route bus operators, states and territories, local government entities running fixed-route bus service, and Indian tribes. Private nonprofit organizations engaged in public transportation can participate as subrecipients. For projects in rural areas, states must submit the application unless the project comes from an Indian tribe. All proposals must go through Grants.gov under opportunity number FTA-2026-010-TPM-BUS, with a deadline of September 21, 2026, at 11:59 PM Eastern Time. Benefits - Approximately $21 million in total available funding - Five awards expected to be made - Funding covers bus replacement, rehabilitation, purchase, or lease - Funding covers related equipment acquisition - Funding covers bus facility construction, rehabilitation, purchase, or lease - Projects in rural areas can be bundled into a single statewide application Eligibility - Designated recipients that allocate funds to fixed-route bus operators - States, including territories and Washington D.C. - Local governmental entities that operate fixed-route bus service - Indian tribes - Private nonprofit organizations engaged in public transportation (as subrecipients only) - All proposals for rural area projects must be submitted by a State, except those proposed by Indian tribes - Proposals must be submitted electronically through Grants.gov Required Documents - Full application submitted through Grants.gov under opportunity FTA-2026-010-TPM-BUS - Project proposal describing the capital project and its scope - Documentation demonstrating eligible applicant status How to Apply 1. Review the full announcement on Grants.gov under opportunity number FTA-2026-010-TPM-BUS. 2. Prepare your proposal and gather all required documentation before the deadline. 3. Submit your application electronically through Grants.gov by September 21, 2026, at 11:59 PM Eastern Time.