Facing Federal Funding Freeze, NJ Transit Revises Zero-emission Plan

The agency is retooling a plan to modernize its aging bus depots after the Trump administration decided to freeze nearly $324 million in grants.

1 minute read

March 15, 2026, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


White and blue NJ Transit bus in front of Newark Penn Station in Newark, New Jersey.

An NJ Transit bus in Newark, New Jersey. | George Wirt / Shutterstock

The NJ Transit agency is scaling back its efforts to electrify its fleet after the federal government froze millions in funding, reports Colleen Wilson for NorthJersey.com.

As Wilson explains, “NJ Transit secured nearly $324 million in federal funds between 2020 and 2024 to modernize four bus garages in North Jersey, in part so they would be equipped to handle electric buses.”  NJ Transit planned to modernize its garages before expanding its electric fleet to avoid range problems and other issues faced by other transit agencies. 

Now, federal funding is frozen, and the plan is on hold. “To unlock these frozen funds, NJ Transit devised a plan to shift some federal dollars to cover upgrades on the garages without electric vehicle investments.” According to NJ Transit President and CEO Kris Kolluri, “We are adapting to policy changes, technology changes, but in no way are we moving away from the state mandate of an eventual goal of zero-emissions.”

Editor's Note: The headline for this article was updated to reflect that NJ Transit has not halted its electrification strategy, but is shifting resources to align with federal requirements.

Thursday, March 12, 2026 in NorthJersey.com

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