New Round of Federal Clean Transit Funding Announced

As part of the Biden administration’s efforts to shift the nation’s energy supplies away from fossil fuels and reduce emissions in the transportation sector, the Federal Transit Administration (FTA) announced “nearly $1.7 billion” in funding aimed at supporting the modernization and electrification of public transit fleets in 2023. The funding, part of $7.5 billion allocated in the Bipartisan Infrastructure Law, includes $1.22 billion for the Low or No Emission (Low-No) Program and $469 million for the Grants for Buses and Bus Facilities Program.

According to a press release from the Department of Transportation (USDOT), “Made possible by the President’s Bipartisan Infrastructure Law, which included historic funding to support public transportation, this Notice of Funding Opportunity (NOFO) is for two programs that help transit agencies replace old buses, provide good-paying jobs, improve transit affordability and reliability, invest in community health and environmental justice, and contribute to the President’s goal of net-zero emissions by 2050.”

The programs require that five percent of each grant is directed to workforce development efforts to help close the staffing gap faced by many transit agencies. The grants also prioritize “projects that advance environmental justice” as defined by the Justice40 Initiative.