FTA Bus & Low-No Grants: $610M for Transit Bus Fleets and Facilities (FY 2026)

The Federal Transit Administration has opened its joint FY 2026 notice for the Grants for Buses and Bus Facilities Infrastructure Programs — $589 million under the Low or No Emission Program (Low-No) and $21.6 million under the Buses and Bus Facilities Competitive Program, together roughly $610 million for cities, counties, transit agencies, states, and tribes to replace and modernize bus fleets and the facilities that support them. Applications are due through Grants.gov by September 21, 2026, one supplemental form serves both programs, and the selection posture has shifted for FY 2026: FTA says it intends to prioritize low-emission projects over zero-emission projects to the maximum extent permitted by law.

Two Programs, One NOFO, One Form

FTA publishes these as a single joint NOFO because the programs overlap and run on the same statutory timeline. The practical differences:

• Bus Program (§ 5339(b)): buses and bus facilities of any propulsion type — diesel replacements are fully eligible. Applicants (except tribes) must operate or allocate funds to fixed-route bus service.
• Low-No Program (§ 5339(c)): low-emission buses (propane, CNG, hybrid-electric) or zero-emission buses (battery-electric, hydrogen fuel-cell, catenary trolley), plus the charging, fueling, and maintenance facilities that support them.

You can submit the same project to both programs when it qualifies for both (all buses low- or zero-emission, request within the Bus Program's 10% cap) — FTA encourages it, and decides which program funds a doubly-selected project. Applying to both means submitting the identical package twice, once under each Grants.gov opportunity ID.

Who Can Apply — and the Rural Rule

• Designated recipients of FTA formula funds
• States, territories, and Washington, D.C.
• Local government entities (cities, counties, transit authorities)
• Federally recognized Indian tribes

The catch for small communities: all projects in rural areas must be submitted by the state, individually or in a consolidated state application (tribes excepted). If you're a rural operator, your path to this money runs through your state DOT — and their internal deadlines will fall well before September 21. Subrecipients can include private nonprofits engaged in public transportation under the Bus Program.

What the Money Funds

• Vehicles: purchasing, leasing, or rehabilitating transit buses — any propulsion under the Bus Program; low- or zero-emission under Low-No. New bus models must have completed FTA Bus Testing, and prototype deployments are ineligible.
• Facilities and equipment: acquiring, constructing, rehabilitating, or leasing bus-related facilities — including charging and fueling infrastructure under Low-No.
• Workforce development: 5% of the federal request for zero-emission projects is mandatory for workforce development (retraining, registered apprenticeships, labor-management programs), unless you certify less is needed under your fleet transition plan. It's budgeted on top of the project (divide your vehicle request by 0.95), and it requires local match. Low- and standard-emission projects may optionally budget 0.5% for workforce training plus 0.5% for the National Transit Institute.
• Incidental costs such as administration are allowed when the project produces an eligible capital asset.

The FY 2026 Selection Shift

Two statements in the review section deserve close attention from anyone planning a battery-electric procurement:

• "Within the Low-No Program, FTA intends to prioritize low-emission projects over zero-emission projects, to the maximum extent permitted by law."
• Among zero-emission projects, FTA intends to prioritize those that are "highly innovative, particularly those utilizing automated vehicle technology."

Combined with the statutory floor reserving at least 25% of Low-No funds for non-zero-emission projects, FY 2026 is a strong cycle for CNG, propane, and hybrid-electric proposals. Zero-emission projects remain fully eligible — but they carry the transition plan and workforce set-aside requirements, and they're no longer the presumptive favorites. FTA also lists broader selection considerations: geographic diversity, transit system size, propulsion mix, urban/rural/tribal balance, an applicant's management of prior federal transit funds, and alignment with current DOT orders and executive-order priorities.

The Zero-Emission Fleet Transition Plan

Any request for zero-emission vehicles — or facilities and equipment that directly support them — must attach a Zero-Emission Fleet Transition Plan, a standalone document with all six statutorily defined components. This applies to everyone, including tribes requesting under $1 million. State DOTs may submit one plan covering multiple subrecipients, attach each subrecipient's own plan, or combine both. FTA emphasizes plans "do not need to be complex" — but a missing plan makes the application legally deficient.

How Applications Are Scored

An evaluation committee rates each application Highly Recommended, Recommended, or Not Recommended against six criteria, using only what's in the Supplemental Form and directly referenced attachments:

• Demonstration of Need — replaced vehicles must meet minimum useful life at project completion; address FTA spare ratio guidelines (zero-emission additions can shift retired vehicles to a contingency fleet)
• Demonstration of Benefits — emissions and energy reductions for Low-No; condition, safety, and access improvements for the Bus Program
• Planning and Local/Regional Prioritization — consistency with long-range plans, letters of support
• Local Financial Commitment — evidence the match is committed (board resolution, budget line); FTA views favorably projects requesting only the incremental cost of new technology over standard replacements; identify a minimum viable amount if your project is scalable
• Project Implementation Strategy — projects that can obligate within 12 months of selection rate higher; note completed design work, Bus Testing status, TIP/STIP amendments, and NEPA categorical exclusions. Naming project partners (manufacturers, vendors, consultants) in a Low-No application satisfies competitive procurement requirements for those entities
• Technical, Legal, and Financial Capacity — including any open FTA compliance or Single Audit findings

Extra-credit items addressed in the Supplemental Form: location in a qualified Opportunity Zone, cost-effective procurement commitments (state purchasing schedules without customization, joint procurements with three or more agencies, or standard models confirmed by a manufacturer letter), advance/progress payment terms that strengthen U.S. bus manufacturing, and benefits for families and communities.

Submission Mechanics

1. SAM.gov: active registration with a UEI required; allow several weeks.
2. Grants.gov: registration is multi-step and can take weeks. Submit the SF-424 plus the FY 2026 Supplemental Form — it must be this year's fillable PDF, completed on a computer. Scanned or print-to-PDF versions are rejected by FTA's system.
3. Attachments: hard limit of 15 per application, and every supporting document must be referenced by file name in the Supplemental Form or FTA may not review it.
4. Timing: FTA strongly recommends submitting at least 72 hours early; a rejected application must be fixed, fully re-attached, and resubmitted (resubmission box checked) before the deadline.

This program is not subject to Executive Order 12372 intergovernmental review. Selections must be announced within 75 days of the deadline — roughly early December 2026 — and pre-award costs incurred before obligation are ineligible without written FTA authorization. Awarded projects flow through TrAMS, carry Buy America and Build America/Buy America domestic-content requirements, and inherit urban (5307) or rural (5311) program requirements.

Practical Guidance for FY 2026 Applicants

• Rural operators: call your state DOT this week. The state consolidated-application rule means your real deadline is theirs, not FTA's.
• Consider a low-emission strategy. Between the 25% statutory floor and FTA's stated FY 2026 preference, CNG/propane/hybrid proposals compete in a favorable lane — and skip the transition plan and 5% workforce mandate.
• Apply to both programs where eligible. It's one form submitted twice, and it doubles your selection paths.
• Budget the workforce set-aside correctly. For zero-emission requests, it's additive: a $3,000,000 vehicle request becomes $3,157,895 total ($3M ÷ 0.95).
• Request the incremental cost where you can. FTA explicitly favors applications that fund only the technology premium over a standard replacement.
• Front-load implementation readiness. Twelve-month obligation capability, completed design, tested bus models, and a NEPA categorical exclusion all rate higher.

Contact Information

• Program questions: FTALowNoBusNOFO@dot.gov or 202-366-2053 (Kirsten Wiard-Bauer, Office of Program Management)
• Full NOFO: FTA's Notices of Funding page and the Grants.gov FIND module under both opportunity IDs

How Avila Can Help

A competitive Bus or Low-No application is a coordination exercise: fleet condition data, spare ratio math, a transition plan, match documentation, TIP/STIP amendments, and a supplemental form with strict formatting rules — possibly filed twice. Avila helps cities, counties, and transit agencies find opportunities like this early, decode NOFO requirements, and draft competitive responses. Book a demo to see how transit and public works teams use Avila on exactly this kind of application.

For related federal-grant guides, see our posts on the FTA ferry programs, the Safe Streets and Roads for All program, and the DOT BUILD discretionary grant. For registration prerequisites, see SAM.gov registration and Grants.gov registration.